REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
MARVIN'S MAGIC LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
MARVIN'S MAGIC LIMITED |
MARVIN'S MAGIC LIMITED (REGISTERED NUMBER: 03879058) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Income Statement | 11 |
Other Comprehensive Income | 12 |
Balance Sheet | 13 |
Statement of Changes in Equity | 14 |
Cash Flow Statement | 15 |
Notes to the Cash Flow Statement | 16 |
Notes to the Financial Statements | 18 |
MARVIN'S MAGIC LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
55 Loudoun Road |
St John's Wood |
London |
NW8 0DL |
BANKERS: |
Bridle Road |
Bootle |
Merseyside |
L30 4GB |
MARVIN'S MAGIC LIMITED (REGISTERED NUMBER: 03879058) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
FAIR REVIEW OF BUSINESS |
Marvin's Magic is recognised as a brand leader in theatrical, magical products. |
Well known for creating "in-store, retail-tainment" in famous Toy and Department stores such as Hamleys and Harrods in London and FAO Schwarz in New York. |
Marvin's Magic has recently opened additional key demonstration locations in Galeries LaFayette in Paris and Hamleys in Rome and Milan. |
In addition to the company's Demonstration Division Marvin's Magic has a strong wholesale business selling into mass market retailers, grocery stores and hyper markets as well as mid-tier size retailers and department stores and independent, specialty retailers. The brand can be found in many international regions however key revenue driving markets remain the UK and North America. The company will continue to develop new products particularly aimed toward "selling off the shelf" in retail environments. |
Marvin's Magic has invested heavily in e-commerce since 2020 and now has a robust online retail division of c.£4.5m at retail. The company has recruited an e-commerce Manager and Marketing Manager to help build their online success. Marvin's Magic is regularly awarded the "Amazon's Choice" icon across the Amazon platform in the UK and USA. The company is also steadily building up its turnover on Amazon across France, Italy, Germany and Spain. Marvin's Magic also has loyal fans and a following that wishes to buy unique, exclusive items - direct from the brand - and as such is building it's Direct to Consumer business via its website, marvinsmagic.com |
PRINCIPAL RISKS AND UNCERTAINTIES |
The following are seen as key risks and uncertainties to the business: |
Losing key customers, the company mitigates against this by building recurring revenues with well-established customers, adding more products to their portfolio increasing their value to the market as well as opening new trading divisions that allow them to sell new products into existing customers. The company has a long-standing reputation for delivering quality, innovative products and services and remains well regarded in the market. |
Increase in cost of products, the company mitigates against this by having a trusted supplier base with opportunities to manufacture in different locations at competitive prices. |
Possible increases in freight, which the company mitigates against by holding strong relationships with shipping companies and keeping in close communication to agree the most competitive rates. |
Currency fluctuations, which the company mitigates via agreeing forward orders on currencies as well as a natural hedge based on key operations in the US with purchases in the Far East being made in USD. |
DEVELOPMENT AND PERFORMANCE |
This year the company launched a Distribution Trading Division. Marvin's Distribution will see the company bring quality brands to the UK and Irish market utilising their existing infrastructure and strong relationships with key retailers. Exclusive distribution agreements have already been drawn up with FAO Schwarz, Sharper Image, Discovery Science, ZipString and Clixo. As this division expands it will bring revenues into the business which in turn will be used to strengthen and develop the overall value of the collective "Marvin's Company". |
The company plans to expand its demonstration business in the year ahead working with museums, theme parks and other high footfall, tourist locations. |
Profit for the period was £581,384 (2022 £2,101,903). |
MARVIN'S MAGIC LIMITED (REGISTERED NUMBER: 03879058) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
KEY PERFORMANCE INDICATORS |
2023 | 2022 |
Turnover | 11,377,468 | 12,567,296 |
Gross profit | 4,913,306 | 6,182,608 |
Gross profit margin | 43.2% | 49.2% |
NON-FINANCIAL KEY PERFORMANCE INDICATORS |
Product Quality |
The company prides itself on developing quality products to be sold into High-End retailers. |
Through the product development stages samples are sent and signed off by the company's Creative Director - and when a product is finalised a "Gold Seal" sample is retained by way of measure and comparison to the product that reaches the market. |
The company very rarely has returns of goods. |
Intellectual Property |
Adopting counter measures (legal when necessary) to defend and protect brand and IP. |
IP including but not limited to brand names: |
-Ultimate Magic |
-iMagic |
-Magic Made Easy |
-Wicked Pranks |
IP on Packaging: |
-Chamfered edge box design |
-"Now you see it, now you don't" box design |
IP on Literature and Design: |
-Instruction text and illustrations |
-Logos and Designs |
Product Innovation |
Careful eye on the toy industry with regular meetings key buyers and agencies to monitor competition. |
Work with experts (magicians, inventors) to ensure provenance of product development. |
Further brand expansion into Arts, Pranks and Science. New evolving packaging, languages, tricks and moulding. |
MARVIN'S MAGIC LIMITED (REGISTERED NUMBER: 03879058) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Factory and Product Compliance |
The company's trusted factories comply with the latest in social and ethical audits and this is an ongoing requirement for the Global retailers the brand trades with e.g., SEDEX, BSCI, ISO and a range of customer specific audits which are independently and forensically checked annually to ensure ongoing maintenance. |
All products are safety tested to meet international recognised standards and the company retains a Safety Toy Specialist to advise on the safety requirements and any changes in legislation. |
The product range is routinely tested bi-annually with Bureau Veritas to ensure ongoing compliance. |
Employee Engagement |
The company continues to hire key new recruits however has some long-standing employees at their Marvin's Magic Head office who have been with the company for many years. The average employee tenure is 11 Years. |
Brand Preference |
The company is the number one brand for Magic Tricks on Amazon in the UK and USA and regularly dominates the Top Ten best sellers list. |
The company is the only Magic brand to be officially endorsed by the World-Famous Magic Circle for 25 years. |
Customer Retention |
Long standing relationships with many customers - some as long as 37 years. With an average of 18 years across our top ten customers. |
Position at the year end |
The company had a net position of £3,160,283 at the balance sheet date. |
ON BEHALF OF THE BOARD: |
MARVIN'S MAGIC LIMITED (REGISTERED NUMBER: 03879058) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company is that of the design and distribution of magical products, Magic Tricks, Art & Craft and Pranks and Jokes under the brand name, Marvin's Magic. |
DIVIDENDS |
During the year interim dividends of £2,744,339 were paid. |
The directors recommend that no final dividend be paid. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company 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 UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the |
company's 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. They are 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. |
MARVIN'S MAGIC LIMITED (REGISTERED NUMBER: 03879058) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium sized companies exemption. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MARVIN'S MAGIC LIMITED |
Opinion |
We have audited the financial statements of Marvin's Magic Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
_ |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MARVIN'S MAGIC LIMITED |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, 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 directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MARVIN'S MAGIC LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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. Based on our understanding of the company and its industry, we identified that the principal risks on non-compliance with laws and regulations related to Employment Law and Health and Safety regulations, and we considered the extent to which non compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006. |
As part of our planning of the audit work required we obtained an understanding of the legal and regulatory frameworks that are applicable to the entity via enquiries of the company’s management, carried out analytical procedures, held discussions amongst the engagement team and using knowledge of the sector determined that the most significant laws and regulation are those that relate to: |
· Employment law. |
· Health and safety. |
· Data protection. |
· UK Tax legislation. |
We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as FRS102 and the Companies Act 2006. |
Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with the laws and regulations and the fraud risks identified. This included enquiries with management to understand their policies and procedures for compliance with those regulations and we completed the following tests: |
· Obtained an understanding of relevant controls. |
· Reviewed the company’s policies. |
· Checked samples of documentation. |
We also assessed the risks of material misstatement in respect of fraud as follows: |
· Revenue fraud. |
· Unauthorised expenditure and/or payments. |
· Management override of controls. |
· Related party fraud. |
Based on the results of our risk assessment we designed our audit procedures to identify and to address material |
misstatements in relation to fraud. This included the risk of management bias relating to judgements and assumptions used in calculating the year end stock provision along with testing manual journals. |
No significant issues were identified during our testing. |
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non – detection of irregularities, as these may involve collusions, forgery, intentional omissions, misrepresentations or the override of internal controls. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MARVIN'S MAGIC LIMITED |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
Statutory Auditor |
55 Loudoun Road |
St John's Wood |
London |
NW8 0DL |
MARVIN'S MAGIC LIMITED (REGISTERED NUMBER: 03879058) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Distribution costs | ( |
) | ( |
) |
Administrative expenses | ( |
) | ( |
) |
OPERATING PROFIT | 7 |
Interest payable and similar expenses | 8 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 9 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
MARVIN'S MAGIC LIMITED (REGISTERED NUMBER: 03879058) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
MARVIN'S MAGIC LIMITED (REGISTERED NUMBER: 03879058) |
BALANCE SHEET |
31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Capital redemption reserve | 19 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
MARVIN'S MAGIC LIMITED (REGISTERED NUMBER: 03879058) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
MARVIN'S MAGIC LIMITED (REGISTERED NUMBER: 03879058) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
Intercompany loans | (387,489 | ) | (596,705 | ) |
Amount introduced by directors | 19,011 | - |
Amount withdrawn by directors | - | (185 | ) |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
564,985 |
Cash and cash equivalents at end of year | 2 | 597,189 | 1,691,738 |
MARVIN'S MAGIC LIMITED (REGISTERED NUMBER: 03879058) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Finance costs | 116,595 | 70,870 |
877,311 | 2,676,315 |
Decrease/(increase) in stocks | ( |
) |
Decrease in trade and other debtors |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 597,189 | 1,691,738 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 1,691,738 | 786,479 |
Bank overdrafts | ( |
) |
1,691,738 | 564,985 |
MARVIN'S MAGIC LIMITED (REGISTERED NUMBER: 03879058) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,691,738 | (1,094,549 | ) | 597,189 |
1,691,738 | ( |
) | 597,189 |
Debt |
Debts falling due within 1 year | (200,000 | ) | (30,729 | ) | (230,729 | ) |
Debts falling due after 1 year | (683,333 | ) | 200,000 | (483,333 | ) |
(883,333 | ) | 169,271 | (714,062 | ) |
Total | 808,405 | (925,278 | ) | (116,873 | ) |
MARVIN'S MAGIC LIMITED (REGISTERED NUMBER: 03879058) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Marvin's Magic Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Mayland's Building, Maylands Avenue, Hemel Hempstead, Hertfordshire, HP2 7TG. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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. |
Turnover |
Turnover represents amounts receivable for goods and services net of VAT |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Patents and licences are being amortised evenly over their estimated useful life of 3-10 years. |
Computer software is being amortised evenly over its estimated useful life of 4-5 years. |
Tangible fixed assets |
Fixtures and fittings | - |
Stocks |
Stocks are stated at the lower of cost and net realisable value. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
MARVIN'S MAGIC LIMITED (REGISTERED NUMBER: 03879058) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign 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 |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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. |
Provisions |
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. |
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises. |
3. | JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
There were no areas requiring significant judgements or estimates during the period. |
MARVIN'S MAGIC LIMITED (REGISTERED NUMBER: 03879058) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
31.12.23 | 31.12.22 |
£ | £ |
United Kingdom |
Europe |
Other overseas | 6,955,342 | 8,208,573 |
5. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Total |
6. | DIRECTORS' EMOLUMENTS |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration |
Information regarding the highest paid director is as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Emoluments etc |
MARVIN'S MAGIC LIMITED (REGISTERED NUMBER: 03879058) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
7. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.12.23 | 31.12.22 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Patents and licences amortisation |
Computer software amortisation |
Audit fees |
Foreign exchange differences |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
£ | £ |
Bank interest |
Interest payable |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.23 | 31.12.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Unadjusted differences | (6,138 | ) | 3,931 |
Total tax charge | 159,096 | 491,901 |
MARVIN'S MAGIC LIMITED (REGISTERED NUMBER: 03879058) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | DIVIDENDS |
31.12.23 | 31.12.22 |
£ | £ |
Ordinary shares of £1 each |
Interim |
11. | INTANGIBLE FIXED ASSETS |
Patents |
and | Computer |
licences | software | Totals |
£ | £ | £ |
COST |
Additions |
At 31 December 2023 |
AMORTISATION |
Amortisation for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
12. | TANGIBLE FIXED ASSETS |
Fixtures |
and |
fittings |
£ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
13. | STOCKS |
31.12.23 | 31.12.22 |
£ | £ |
Finished goods |
MARVIN'S MAGIC LIMITED (REGISTERED NUMBER: 03879058) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors | ( |
) |
Directors' current accounts | - | 484 |
Prepayments and accrued income |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans and overdrafts (see note 17) |
Other loans (see note 17) |
Trade creditors |
Taxation |
Social security and other taxes |
VAT | 282,957 | 259,843 |
Other creditors |
Directors' current accounts | 18,527 | - |
Accruals and deferred income |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans (see note 17) |
17. | LOANS |
An analysis of the maturity of loans is given below: |
31.12.23 | 31.12.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Other loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
MARVIN'S MAGIC LIMITED (REGISTERED NUMBER: 03879058) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
Ordinary | £1 | 20,000 | 20,000 |
19. | RESERVES |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2023 | 5,303,238 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 December 2023 | 3,140,283 |
20. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension costs charge represents contributions payable by the company to the fund. |
The pension charge for the year was £36,831 (2022: £34,519). |
Included in other creditors is an amount of £7,483 (2022: £7,302) that is outstanding as at the year end. |
21. | RELATED PARTY TRANSACTIONS |
Transactions with related parties |
The company has taken advantage of the exemption available in accordance with FRS 102 section 33 'Related party disclosures' not to disclose transactions entered into between two or more members of a group, as the company is a wholly owned subsidiary undertaking of the group to which it is party to the transactions. |
During the year the company paid rent of £37,500 (2022: £78,750) to First Class Limited Retirement Benefit Scheme, a pension scheme in which one of the directors is a trustee and member. Included within trade creditors is an amount of £123,629 (2022: £104,572) owed to First Class Limited Retirement Benefit Scheme. |
22. | PARENT COMPANY |
The ultimate parent undertaking of the company that prepares group accounts is Marvin's Magic Holdings Limited, whose registered office is The Mayland's Building, Maylands Avenue, Hemel Hempstead, Hertfordshire, United Kingdom, HP2 7TG. |
23. | FINANCIAL COMMITMENTS |
The company has a cross guarantee in place with Marvin's Magic Holdings Limited, its parent company to secure loans against the companies' assets. |
At the year end the company had lease commitments of £49,500. |