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Registration number: 14508887

Prepared for the registrar

Paul Simon Magic Group Holdings Ltd

Annual Report and Unaudited Financial Statements

for the Period from 28 November 2022 to 30 September 2023

 

Paul Simon Magic Group Holdings Ltd

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 7

 

Paul Simon Magic Group Holdings Ltd

Company Information

Directors

M Michael

S Oliver

Registered office

Magic House
5-11 Green Lanes
Palmers Green
London
N13 4TN

Accountants

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

 

Paul Simon Magic Group Holdings Ltd

(Registration number: 14508887)
Balance Sheet as at 30 September 2023

Note

2023
£

Fixed assets

 

Investment property

4

91,360,000

Investments

5

2

 

91,360,002

Current assets

 

Debtors

6

1,633,649

Cash at bank and in hand

 

100,068

 

1,733,717

Creditors: Amounts falling due within one year

7

(45,404,386)

Net current liabilities

 

(43,670,669)

Total assets less current liabilities

 

47,689,333

Creditors: Amounts falling due after more than one year

7

(47,149,700)

Net assets

 

539,633

Capital and reserves

 

Called up share capital

9

100

Retained earnings

539,533

Shareholders' funds

 

539,633

For the financial period ending 30 September 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the period in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 26 November 2024 and signed on its behalf by:
 


M Michael
Director

 

Paul Simon Magic Group Holdings Ltd

Notes to the Unaudited Financial Statements for the Period from 28 November 2022 to 30 September 2023

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Magic House
5-11 Green Lanes
Palmers Green
London
N13 4TN

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Group accounts not prepared

The company has taken advantage of the exemption in section 398 of the Companies Act 2006 from the requirement to prepare consolidated financial statements, on the grounds that it is a small group.

Going concern

The company's rental income exceeds its borrowing costs and the directors expect that this will continue to be the case going forward. Whilst the bank loan is due for repayment in September 2026, the directors expect to be able to refinance the loan as required at that date.

Judgements and estimation uncertainty

These financial statements do not contain any significant judgements or estimation uncertainty.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company. The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Tax

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 

Paul Simon Magic Group Holdings Ltd

Notes to the Unaudited Financial Statements for the Period from 28 November 2022 to 30 September 2023

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.


Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 

Paul Simon Magic Group Holdings Ltd

Notes to the Unaudited Financial Statements for the Period from 28 November 2022 to 30 September 2023

Financial instruments (continued)

Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

3

Staff numbers

The average number of persons employed by the company (including directors) during the period, was as follows:

 

Paul Simon Magic Group Holdings Ltd

Notes to the Unaudited Financial Statements for the Period from 28 November 2022 to 30 September 2023

 

4

Investment properties

£

Transfers from group companies and at 30 September 2023

91,360,000

There has been no valuation of investment property by an independent valuer.

 

5

Investments

2023
£

Investments in subsidiaries

2

Subsidiaries

£

Cost and carrying amount

Additions and at 30 September 2023

2

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2023

Subsidiary undertakings

Magic Living Limited

England and Wales

Ordinary

100%

Magic Homes Ltd.

England and Wales

Ordinary

100%

Subsidiary undertakings

Magic Living Limited

The principal activity of Magic Living Limited is that of property rental.

Magic Homes Ltd.

The principal activity of Magic Homes Ltd. is that of property rental.

Both Magic Living Limited and Magic Homes Ltd. have the same registered office as Paul Simon Magic Group Holdings Ltd.

 

6

Debtors

2023
£

Amounts owed by related parties

1,633,549

Other debtors

100

1,633,649

 

Paul Simon Magic Group Holdings Ltd

Notes to the Unaudited Financial Statements for the Period from 28 November 2022 to 30 September 2023

 

7

Creditors

Note

2023
£

Due within one year

 

Amounts due to group undertakings

 

45,374,372

Social security and other taxes

 

5,889

Other payables

 

21,125

Accruals and deferred income

 

3,000

 

45,404,386

Due after one year

 

Loans and borrowings

8

47,149,700

 

8

Loans and borrowings

Non-current loans and borrowings

2023
£

Bank borrowings

47,149,700

The loans are secured and are repayable in full in September 2026.

Included in bank loans are debt costs of £353,300, which are being amortised over the length of the loan.

 

9

Share capital

Allotted, called up and fully paid shares

 

30 September 2023

 

No.

£

Ordinary A shares of £0.00 each

500,000

50

Ordinary B shares of £0.00 each

500,000

50

 

1,000,000

100

499,998 of Ordinary A shares of £0.0001 and 499,998 of Ordinary B shares of £0.0001 were allotted upon incorporation.

New shares allotted

During the period, 2 Ordinary A shares having an aggregate nominal value of £0.0001 were allotted for an aggregate consideration of £0.01. These shares were allotted on 8 March 2023.

During the period, 2 Ordinary B shares having an aggregate nominal value of £0.0001 were allotted for an aggregate consideration of £0.01. These shares were allotted on 8 March 2023.

 

10

Parent and ultimate parent undertaking

There is considered to be no single controlling party.

 

11

Disclosure under Section 444(5B) CA 2006

As permitted by Section 444 CA 2006, these accounts do not contain a copy of the company’s Profit and Loss account or a copy of the Directors’ Report. These accounts are unaudited.