Company registration number 08356623 (England and Wales)
MGS FINANCE & TRADING LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
MGS FINANCE & TRADING LIMITED
COMPANY INFORMATION
Directors
Mr P J Mahoney
Mrs E Mahoney
Company number
08356623
Registered office
Suite 5.1
12 Tithebarn Street
Liverpool
L2 2DT
Accountants
BWM
Suite 5.1
12 Tithebarn Street
Liverpool
L2 2DT
Bankers
Handlesbanken
Exchange Station
Tithebarn Street
Liverpool
L2 2QP
MGS FINANCE & TRADING LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 6
MGS FINANCE & TRADING LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Current assets
Stocks
85,857
182,737
Debtors
4
15,466
47,280
Cash at bank and in hand
72,574
1,574
173,897
231,591
Creditors: amounts falling due within one year
5
(6,420)
(49,298)
Net current assets
167,477
182,293
Creditors: amounts falling due after more than one year
6
-
0
(26,425)
Net assets
167,477
155,868
Capital and reserves
Called up share capital
7
100
100
Share premium account
1,995
1,995
Profit and loss reserves
165,382
153,773
Total equity
167,477
155,868

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime in accordance with the provisions of FRS 102 section 1A for small entities.

The financial statements were approved by the board of directors and authorised for issue on 24 December 2024 and are signed on its behalf by:
Mr P J  Mahoney
Director
Company Registration No. 08356623
MGS FINANCE & TRADING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
100
1,995
151,027
153,122
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
2,746
2,746
Balance at 31 March 2023
100
1,995
153,773
155,868
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
13,609
13,609
Dividends
-
-
(2,000)
(2,000)
Balance at 31 March 2024
100
1,995
165,382
167,477
MGS FINANCE & TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
1
Accounting policies
Company information

MGS Finance & Trading Limited is a private company limited by shares incorporated in England and Wales. The registered office is Suite 5.1, 12 Tithebarn Street, Liverpool, L2 2DT.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents the invoiced value of properties sold in the period, amounts received for rents due from stock properties held for sale and interest received from loans advanced by the company.

1.4
Stocks

Stocks consist of properties held with a view to develop and trade in both the shorter and longer term. Stocks are stated at the lower of cost or net realisable value. Cost is defined as the expenditure incurred in the normal course of business in bringing the property to its present condition. This expenditure includes cost of purchase and the cost of improvement, development and conversion.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.5
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.

1.6
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

MGS FINANCE & TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.7
Equity instruments

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

1.8
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred taxation is recognised on all timing differences where the transactions or events that give the company an obligation to pay more tax in future, or a right to pay less tax in future, have occurred by the balance sheet date. Deferred tax assets are recognised when it is more likely than not that they will be recovered. Deferred tax is measured using rates of tax that have been enacted or substantively enacted by the balance sheet date. Deferred tax is not discounted.

MGS FINANCE & TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
2
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Total
-
0
-
0
3
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
3,193
644
4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
-
0
603
Other debtors
15,466
46,677
15,466
47,280
Included within other debtors is £15,172 owed by P Mahoney, director. Included within other debtors in the prior year was £20,000 due from E Mahoney, a director of the company, and £451 due from MGS Estates Ltd, a connected company, both of these amounts were repaid in full during the year ended 31 March 2024.
5
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
-
0
11,075
Corporation tax
3,193
644
Other creditors
3,227
37,579
6,420
49,298
6
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
-
0
26,425

The bank loan, secured by the UK Government, was repaid in full during the year ended 31 March 2024.

MGS FINANCE & TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
7
Called up share capital
2024
2023
Ordinary share capital
£
£
Issued and fully paid
A Ordinary shares of £1 each
95
95
B Ordinary shares of £1 each
5
5
100
100

Both A and B Ordinary shares hold full voting rights and rights on a return in capital with dividends at the discretion of directors.

8
Directors' transactions

During the year, Mrs E Mahoney, director, repaid the loan of £20,000 which was outstanding at 31 March 2023. Mr P Mahoney, director, received a loan from the company and the balance outstanding at 31 March 2024 is £15,172 (2023: £NIL).

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