Caseware UK (AP4) 2023.0.135 2023.0.135 2024-04-302024-04-30514513falsefalsefalse2023-05-01false 01050340 2023-05-01 2024-04-30 01050340 2022-05-01 2023-04-30 01050340 2024-04-30 01050340 2023-04-30 01050340 2022-05-01 01050340 1 2023-05-01 2024-04-30 01050340 1 2022-05-01 2023-04-30 01050340 3 2023-05-01 2024-04-30 01050340 3 2022-05-01 2023-04-30 01050340 5 2023-05-01 2024-04-30 01050340 5 2022-05-01 2023-04-30 01050340 1 2023-05-01 2024-04-30 01050340 e:CompanySecretary1 2023-05-01 2024-04-30 01050340 e:Director1 2023-05-01 2024-04-30 01050340 e:Director2 2023-05-01 2024-04-30 01050340 e:Director3 2023-05-01 2024-04-30 01050340 e:Director4 2023-05-01 2024-04-30 01050340 e:Director5 2023-05-01 2024-04-30 01050340 e:RegisteredOffice 2023-05-01 2024-04-30 01050340 e:Agent1 2023-05-01 2024-04-30 01050340 d:Buildings 2023-05-01 2024-04-30 01050340 d:Buildings 2024-04-30 01050340 d:Buildings 2023-04-30 01050340 d:Buildings d:OwnedOrFreeholdAssets 2023-05-01 2024-04-30 01050340 d:LandBuildings 2024-04-30 01050340 d:LandBuildings 2023-04-30 01050340 d:PlantMachinery 2023-05-01 2024-04-30 01050340 d:PlantMachinery 2024-04-30 01050340 d:PlantMachinery 2023-04-30 01050340 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-05-01 2024-04-30 01050340 d:MotorVehicles 2023-05-01 2024-04-30 01050340 d:MotorVehicles 2024-04-30 01050340 d:MotorVehicles 2023-04-30 01050340 d:MotorVehicles d:OwnedOrFreeholdAssets 2023-05-01 2024-04-30 01050340 d:FurnitureFittings 2023-05-01 2024-04-30 01050340 d:FurnitureFittings 2024-04-30 01050340 d:FurnitureFittings 2023-04-30 01050340 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-05-01 2024-04-30 01050340 d:ComputerEquipment 2023-05-01 2024-04-30 01050340 d:OtherPropertyPlantEquipment 2023-05-01 2024-04-30 01050340 d:OtherPropertyPlantEquipment 2024-04-30 01050340 d:OtherPropertyPlantEquipment 2023-04-30 01050340 d:OtherPropertyPlantEquipment d:OwnedOrFreeholdAssets 2023-05-01 2024-04-30 01050340 d:OwnedOrFreeholdAssets 2023-05-01 2024-04-30 01050340 d:CurrentFinancialInstruments 2024-04-30 01050340 d:CurrentFinancialInstruments 2023-04-30 01050340 d:Non-currentFinancialInstruments 2024-04-30 01050340 d:Non-currentFinancialInstruments 2023-04-30 01050340 d:CurrentFinancialInstruments d:WithinOneYear 2024-04-30 01050340 d:CurrentFinancialInstruments d:WithinOneYear 2023-04-30 01050340 d:Non-currentFinancialInstruments d:AfterOneYear 2024-04-30 01050340 d:Non-currentFinancialInstruments d:AfterOneYear 2023-04-30 01050340 f:UnitedKingdom 2023-05-01 2024-04-30 01050340 f:UnitedKingdom 2022-05-01 2023-04-30 01050340 f:RestEuropeOutsideUK 2023-05-01 2024-04-30 01050340 f:RestEuropeOutsideUK 2022-05-01 2023-04-30 01050340 d:UKTax 2023-05-01 2024-04-30 01050340 d:UKTax 2022-05-01 2023-04-30 01050340 d:ShareCapital 2023-05-01 2024-04-30 01050340 d:ShareCapital 2024-04-30 01050340 d:ShareCapital 2022-05-01 2023-04-30 01050340 d:ShareCapital 2023-04-30 01050340 d:ShareCapital 2022-05-01 01050340 d:SharePremium 2023-05-01 2024-04-30 01050340 d:SharePremium 2024-04-30 01050340 d:SharePremium 2022-05-01 2023-04-30 01050340 d:SharePremium 2023-04-30 01050340 d:SharePremium 2022-05-01 01050340 d:RetainedEarningsAccumulatedLosses 2023-05-01 2024-04-30 01050340 d:RetainedEarningsAccumulatedLosses 2024-04-30 01050340 d:RetainedEarningsAccumulatedLosses 2022-05-01 2023-04-30 01050340 d:RetainedEarningsAccumulatedLosses 2023-04-30 01050340 d:RetainedEarningsAccumulatedLosses 2022-05-01 01050340 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2024-04-30 01050340 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-04-30 01050340 d:AcceleratedTaxDepreciationDeferredTax 2024-04-30 01050340 d:AcceleratedTaxDepreciationDeferredTax 2023-04-30 01050340 d:TaxLossesCarry-forwardsDeferredTax 2024-04-30 01050340 d:TaxLossesCarry-forwardsDeferredTax 2023-04-30 01050340 e:OrdinaryShareClass2 2023-05-01 2024-04-30 01050340 e:OrdinaryShareClass2 2024-04-30 01050340 e:OrdinaryShareClass2 2023-04-30 01050340 e:OrdinaryShareClass3 2023-05-01 2024-04-30 01050340 e:OrdinaryShareClass3 2024-04-30 01050340 e:OrdinaryShareClass3 2023-04-30 01050340 e:OrdinaryShareClass4 2023-05-01 2024-04-30 01050340 e:OrdinaryShareClass4 2024-04-30 01050340 e:OrdinaryShareClass4 2023-04-30 01050340 e:FRS102 2023-05-01 2024-04-30 01050340 e:Audited 2023-05-01 2024-04-30 01050340 e:FullAccounts 2023-05-01 2024-04-30 01050340 e:PrivateLimitedCompanyLtd 2023-05-01 2024-04-30 01050340 d:WithinOneYear 2024-04-30 01050340 d:WithinOneYear 2023-04-30 01050340 d:BetweenOneFiveYears 2024-04-30 01050340 d:BetweenOneFiveYears 2023-04-30 01050340 d:MoreThanFiveYears 2024-04-30 01050340 d:MoreThanFiveYears 2023-04-30 01050340 6 2023-05-01 2024-04-30 01050340 7 2023-05-01 2024-04-30 01050340 g:PoundSterling 2023-05-01 2024-04-30 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 01050340









MAGNA SPECIALIST CONFECTIONERS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2024

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
COMPANY INFORMATION


Directors
B I Foskett 
R B Foskett 
A R McHale 
P T McHale 
R H Whitefield 




Company secretary
A Bould-Griffiths



Registered number
01050340



Registered office
Magna Specialist Confectioners Limited
Stafford Park 3

Telford

Shropshire

TF3 3BH




Independent auditors
Fraser Russell Limited

77 Francis Road

Edgbaston

Birmingham

West Midlands

B16 8SP




Bankers
Royal Bank of Scotland Plc
55 Temple Row

Birmingham

B3 2BY





 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 

CONTENTS



Page
Strategic Report
1 - 4
Directors' Report
5 - 8
Directors' Responsibilities Statement
9
Independent Auditors' Report
10 - 13
Statement of Comprehensive Income
14
Balance Sheet
15
Statement of Changes in Equity
16 - 17
Statement of Cash Flows
18
Analysis of Net Debt
19
Notes to the Financial Statements
20 - 38


 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024

Business review
 
The Directors are pleased to report a strong year in the development of the Company.
Investment in expanded capability and capacity remains at the core of our strategy, and we are pleased to see a new high of £16.8m, much of it committed to new technology and assets that will come into use over the next 2 to 3 years. It is particularly significant that plans for a substantial extension of the factory - necessary to accommodate some of those assets, and more - were lodged. Construction commenced in mid-2024.
Sales increased significantly, and Operating Profit rose and EBITDA rose to £18.8m and £25.4m respectively. Given the significant pressures across the industry, and the UK in general, this was considered a strong result.

Principal risks and uncertainties
 
Economic environment
The economic environment does not ease, and to those domestic issues that have been much reported is added a major increase in cocoa prices. These have risen sharply, placing strains throughout the supply chain as all parties strive to maintain competitiveness. 
The outlook for labour costs continues to rise and the first Budget from the new Government has sharply increased the cost of labour through changes to Employers National Insurance, and further increases in the National Minimum Wage.
Our only certainty is that the environment will become harder, but this does not challenge our conviction that the Company is fit for the future. 
Foreign currency risk
The company’s transactions are entirely in sterling for customers and the majority of vendors. Any transactional currency exposures are mitigated by using forward currency contracts.
Credit risk
In the normal course of business, the company trades with its customers on deferred terms. These terms are negotiated in advance. Appropriate credit control procedures are followed to ensure any credit risk is minimised.
Liquidity
The business encounters seasonal cash flow fluctuations. To manage this risk cash flow forecasts are prepared and reviewed. Adequate funding facilities are in place and are negotiated in advance.
Going Concern
The company is in a net assets position and has a low gearing as working capital and short-term cash flow requirements are managed through a combination of retained earnings and financial support from the directors of the business as required.
The financial statements have been prepared on a going concern basis. In drawing this conclusion, the directors have considered the forecasts for the foreseeable future and any likely sensitivity that could be reasonably expected to occur. In addition, they have considered the funding available to them and believe that there is sufficient headroom provided through existing cash and facilities.
 

Financial key performance indicators
Page 1

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024

 
The directors and management focus on several KPI’s to monitor the improvement of productivity and profitability:
                                         2024             2023    Movement %
Turnover    £152.1m  £122.3m    24.4% increase
Operating profit   £18.8m           £13.9m          35.2% increase
EBITDA    £25.4m            £19.6m    29.6% increase

Page 2

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024

Directors' statement of compliance with duty to promote the success of the Company
 
The directors have considered their duty under section 172 of the Companies Act 2005 to act in good faith to promote the success of the Company for the benefit of its shareholders.  In particular, the directors have clear regard to:
  • Likely consequences of any decision in the long term
  • The interest of the Company’s employees.
  • Fostering the Company’s business relationships with suppliers, customers, and stakeholders.
  • The impact of the Company’s operations on people, the environment and the communities in which it 
          operates.
  • The Company’s strong reputation for high standards of business conduct and values
  • The need to act fairly, as members of the company.
The company is family owned and run, which permits a long-term view and clear focus. 
We focus on strategic relationships with a small number of customers which have been developed over many years. These are built on mutual integrity and trust and are dynamic and highly collaborative in nature.
 
We have a strong pool of domestic and international suppliers for primary materials with whom we again strive to form strategic relationships. We provide our material suppliers with a communications portal to underpin excellent reliability and to enable the medium-term planning for global sourcing of primary materials. These strengths have been fundamental in our resilience with the challenges of global supply pressures.
We also have a strong local presence through long-standing relationships with many indirect materials, services and contracting suppliers, many of whom have grown along with the Company and share its approach to responsiveness and flexibility.
The Company employs a diverse workforce with everyone recruited directly and not through intermediaries, to promote the most personal relationship we can. Many of those who work on seasonal contracts return to the Company annually which, in a local environment of low -negative unemployment, is testimony to the business as a good place to work.
For those looking to make a long-term career we are a good choice, always looking to help them explore their potential and offering opportunities to develop. We are dedicated to promotion from within and are proud that a large proportion of people holding key positions joined when young, some with modest aspirations but strong personal qualities, and have grown along with the business. 
The owners / managers are high profile and conspicuously active in the business. The culture is open, informal, and respectful. The Managing Director updates everyone as events demand and in a direct and informative manner, whether this is to communicate business developments or to provide critical information as was the case through COVID-19. This was key to maintaining morale and confidence through that period, something that was shown in the exceptionally high levels of loyalty and support the business was shown throughout that experience. We have an employee communications portal for queries, questions, and company updates and regularly consult via satisfaction and feedback surveys.  
We also offer several enhancements including “Refer a friend scheme.” Transportation and parking facilities, access to discounts, Tech scheme and Cycle to work schemes.
The Company has been built by generations of people who share a commitment towards continuous improvement and regard sustainability in all forms as central.   To optimise energy efficiency, the company commissions regular Energy Savings Opportunity Scheme (ESOS) assessments which are carried out by a qualified assessor.  The company carefully reviews and adopts relevant recommendations provided by such reports to further reduce its energy consumption and increase efficiency.
The Company supports its local community in several ways, taking part in a range of fund-raising activities and
Page 3

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024

donating quietly to schools and local causes.  As a manufacturer of special confectionery, we are lucky to have products that so many find fun and valuable to raise money from, and recipients are delighted to make use of our freely offered Giant Charity Easter Eggs, which at 6kg never fail to inspire excitement and interest and enable them to raise many thousands of pounds.


This report was approved by the board on 28 January 2025 and signed on its behalf.



P T McHale
Director

Page 4

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024

The directors present their report and the financial statements for the year ended 30 April 2024.

Principal activity

The Company's principal activity during the year continued to be the manufacture of chocolate confectionery and sales in the United Kingdom markets and customers.

Business review

The directors are pleased to report an excellent year in the development of the Company towards the firms long
term objectives. In particular, the firm is pleased to see that the firm maintained profitability despite the continued
deflationary price pressures and whilst embarking on the heaviest sustained period of investment in plant and
machinery in our history.

Results and dividends

The profit for the year, after taxation, amounted to £12,476,400 (2023 - £8,995,353).

During the year, a total dividends of £10,784,125 (2023: £17,621,234) were declared and divided amongst the shareholders of the Company.

Directors

The directors who served during the year were:

B I Foskett 
R B Foskett 
A R McHale 
P T McHale 
R H Whitefield 

Principal risks and uncertainties

Environmental matters

The Company will seek to minimise adverse impacts on the environment from its activities, whilst continuing to address health, safety and economic issues. The Company has complied with all applicable legislation and regulations.

Land and buildings

The Company adopts a policy of stating land and buildings at historical cost less accumulated depreciation and any accumulated impairment losses. The market value of the land and buildings is substantially higher than the historical cost value as shown in the balance sheet.

Future developments

The Company will continue to invest in its production facilities, ensuring cost control to contribute to it's competitiveness.  The company expects to continue to trade within its current market. The Company remains committed to focusing on optimising productivity, efficiency and quality throughout our operation, and on investing in technical leadership to bring forward innovative solutions to new product opportunities. 

Page 5

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024

Financial instruments

The company uses various financial instruments. These include mainly bank loans and overdrafts and various other items such as trade debtors and trade creditors that arise directly from its operations.
The main purpose of these financial instruments is to raise finance for the company's operations to assist it with its working capital requirements and help with its continued growth. These are reviewed on a regular basis by the company.

Company's policy for payment of creditors

The Company adopts an organised and repeatable debtors and creditors payment policy in order to ensure credit risk from both the debtors and creditors is minimised.  The company has a debtors and creditors payment policy of negotiating payment terms in advance and therefore payments are made in accordance with such terms.

Research and development activities

The Company continues to focus and invest in product and process design. Where required, employees are encouraged to get involved in the company's research and development activities.

Engagement with employees

Employees are key assets of the Company and their quality and motivation are essential for the Company to compete successfully in its market. It is our policy to ensure that no employee or job applicant is treated less favourably than another on the grounds of religion, sexual orientation, disability, race, creed, colour, nationality, ethnic or national origins, sex or marital status.
We recognise the need to create and support a flexible working environment incorporating, where possible, family friendly policies and we believe in and support the development of a working environment which encourages employee involvement in the business.
During the period the Company continued to provide employees with relevant information on matter of concern through bulletins, meeting and reports. Priority is given to ensuring that employees are aware of all significant matters affecting the Company's trading position and of any significant organisational changes. Employees are consulted on a regular basis their views are taken into account for the company's business decisions.

Engagement with suppliers, customers and others

The company regards the engagement with its suppliers and customers including other stakeholders an important part of the business. These parties are consulted accordingly to foster the Company's business relationships.
We conduct regular interviews and surveys so we can understand our customers' needs, help them grow their business and gain feedback at all levels of our business.
We engage with suppliers and other stakeholders is through regular convening's and providing opportunities to highlight important issues and issues are communicated to managements to take actions to resolve issues.

Disabled employees

It is the policy of the Company to support the employment of disabled persons where possible, both in recruitment and by retention of employees who become disabled whilst in the employment of the company, as well as generally through training and career development.

Page 6

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024

Greenhouse gas emissions, energy consumption and energy efficiency action

The Companies Act 2006 (Strategic Report and Directors’ Report) Regulation 2018 requires Magna Specialist Confectioners Ltd to disclose annual UK energy consumption and Greenhouse Gas (GHG) emissions from SECR regulated sources.  Energy and GHG emissions have been independently calculated by Envantage for the 12-month period ending 30 April 2024. 
Reported energy and GHG emissions data is compliant with SECR requirements and has been calculated in accordance with the GHG Protocol and SECR guidelines. Energy and GHG emissions are reported from buildings and transport where operational control is held – this includes electricity, gaseous fuels and business travel in both company-owned and grey fleet vehicles. The table below details the SECR-regulated energy and GHG emission sources from the current and previous reporting periods.

img0d4f.png

The Company is committed to reducing its environmental impact and contribution to climate change through increased energy management, awareness and improvements to operational procedures. 
Several projects were implemented throughout the reporting period including switching to a low-energy boiler for hot water, improving efficiency of chillers and compressors to run on VSDs, as well as installation of LED lighting and electric charging points for vehicles. 
Additional measures involve auto shut-off, vacuum system centralisation, energy-efficient pumps to line coolers, temperature and insulation optimisations, and compressed air leakage fixes. Two CHP engines have been installed to manage seasonal load demands. The Company is also in the process of implementing several other projects, such as upgrades such as heat shrink wrap for improved banding, thermal testing of motors, and enhanced monitoring and targeting.
Methodology
Activity data has been converted into energy and equivalent GHG emissions using the 2024 UK Government GHG Conversion Factors for Company Reporting. Gross calorific value factors were adopted for all activities excluding transport, where mileage data has been converted using net calorific value factors.
Natural gas and electricity disclosures have been calculated based on primary energy data taken from supplier invoices. Scope 2 emissions associated with purchased electricity have been reported using the location-based (LB) method. The market-based (MB) method considers emissions from specific contractual instruments and has been disclosed for comparison only. 
 
Page 7

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024


Transport disclosures have been calculated based on business travel expense claim records. Vehicle information such as engine size and fuel type were not captured against each claim, therefore an emissions factor for a vehicle of average size and unknown fuel type was applied.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsFraser Russell Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 28 January 2025 and signed on its behalf.
 





A Bould-Griffiths
Secretary

Page 8

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 9

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAGNA SPECIALIST CONFECTIONERS LIMITED
 

Opinion


We have audited the financial statements of Magna Specialist Confectioners Limited (the 'Company') for the year ended 30 April 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 30 April 2024 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 United Kingdom, including the Financial Reporting Council'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.


Page 10

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAGNA SPECIALIST CONFECTIONERS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


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 Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, 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 Directors' Responsibilities Statement set out on page 9, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the 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.


Page 11

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAGNA SPECIALIST CONFECTIONERS LIMITED (CONTINUED)


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 an Auditors' 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:

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our: general commercial and sector experience; through verbal and written communications with those charged with governance and other management; through communications with other group auditors, through communications with legal counsel, and via inspection of the company’s regulatory and legal correspondence.
We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations.
We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the company.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the company is subject to laws and regulations that directly affect the financial statements, including: the company’s constitution, relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations.  We identified the following areas as those most likely to have such an affect: operating licences; employment legislation; health and safety legislation; trade and export legislation; legislation relevant to the commercial/domestic property rental environment; the regulatory requirements; GDPR; anti-bribery and corruption legislation.
International Auditing Standards (UK) limit the required procedures to identify non-compliance with these laws and regulations to the procedures, and no procedures over and above those already noted are required.  These limited procedures did not identify any actual or suspected non-compliance which laws and regulations that could have a material impact on the financial statements.
In relation to fraud, we performed the following specific procedures in addition to those already noted:
• Challenging assumptions made by management in its significant accounting estimates in particular;
• Identifying and testing journal entries, in particular any entries posted with unusual nominal ledger account combinations, journal entries crediting cash or any revenue account, journal entries posted by senior management;
• Performing analytical procedures to identify unexpected movements in account balances which may be indicative of fraud;
• Ensuring that testing undertaken on both the Statement of Comprehensive Income including Profit or
Page 12

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAGNA SPECIALIST CONFECTIONERS LIMITED (CONTINUED)


Loss Account and the Balance Sheet includes a number of items selected on a random basis;
These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with International Auditing Standards UK).  For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it.  In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls.  We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.


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 Auditors' Report.


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 2006Our 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 Auditors' 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.






Shokat Zaman (Senior Statutory Auditor)
  
for and on behalf of
Fraser Russell Limited
 
 
Statutory Auditor
 
77 Francis Road
Edgbaston
Birmingham
West Midlands
B16 8SP

28 January 2025
Page 13

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024

2024
2023
Note
£
£

  

Turnover
 4 
152,112,664
122,352,745

Cost of sales
  
(118,267,493)
(94,314,935)

Gross profit
  
33,845,171
28,037,810

Administrative expenses
  
(15,047,301)
(14,180,020)

Operating profit
 5 
18,797,870
13,857,790

Interest payable and similar expenses
 9 
(940,863)
(674,613)

Profit before tax
  
17,857,007
13,183,177

Tax on profit
 10 
(5,380,607)
(4,187,824)

Profit for the financial year
  
12,476,400
8,995,353

Other comprehensive income for the year
  

Total comprehensive income for the year
  
12,476,400
8,995,353

The notes on pages 20 to 38 form part of these financial statements.

Page 14

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
REGISTERED NUMBER: 01050340

BALANCE SHEET
AS AT 30 APRIL 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
57,419,125
47,206,923

Investments
 13 
2,995
2,995

  
57,422,120
47,209,918

Current assets
  

Stocks
 14 
1,787,799
1,612,236

Debtors: amounts falling due within one year
 15 
35,898,648
31,724,292

Cash at bank and in hand
 16 
76,614
60,063

  
37,763,061
33,396,591

Creditors: amounts falling due within one year
 17 
(27,914,441)
(23,028,553)

Net current assets
  
 
 
9,848,620
 
 
10,368,038

Total assets less current liabilities
  
67,270,740
57,577,956

Creditors: amounts falling due after more than one year
 18 
(11,708,197)
(7,057,298)

Provisions for liabilities
  

Deferred tax
 20 
(10,379,240)
(7,029,630)

  
 
 
(10,379,240)
 
 
(7,029,630)

Net assets
  
45,183,303
43,491,028


Capital and reserves
  

Called up share capital 
 21 
8,655,500
8,655,500

Share premium account
 22 
302,500
302,500

Profit and loss account
 22 
36,225,303
34,533,028

  
45,183,303
43,491,028


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 January 2025.




P T McHale
Director

The notes on pages 20 to 38 form part of these financial statements.

Page 15

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£

At 1 May 2023
8,655,500
302,500
34,533,028
43,491,028


Comprehensive income for the year

Profit for the year

-
-
12,476,400
12,476,400


Other comprehensive income for the year
-
-
-
-


Total comprehensive income for the year
-
-
12,476,400
12,476,400


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(10,784,125)
(10,784,125)


Total transactions with owners
-
-
(10,784,125)
(10,784,125)


At 30 April 2024
8,655,500
302,500
36,225,303
45,183,303


The notes on pages 20 to 38 form part of these financial statements.

Page 16

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£

At 1 May 2022
55,500
302,500
43,158,909
43,516,909


Comprehensive income for the year

Profit for the year

-
-
8,995,353
8,995,353


Other comprehensive income for the year
-
-
-
-


Total comprehensive income for the year
-
-
8,995,353
8,995,353


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(17,621,234)
(17,621,234)

Shares issued during the year
8,600,000
-
-
8,600,000


Total transactions with owners
8,600,000
-
(17,621,234)
(9,021,234)


At 30 April 2023
8,655,500
302,500
34,533,028
43,491,028


The notes on pages 20 to 38 form part of these financial statements.

Page 17

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
12,476,400
8,995,353

Adjustments for:

Depreciation of tangible assets
6,587,423
5,661,942

Loss on disposal of tangible assets
3,817
(4,815)

Interest paid
940,863
674,613

Taxation charge
5,380,607
4,187,824

(Increase) in stocks
(175,562)
(163,016)

(Increase) in debtors
(4,167,133)
(17,671,411)

(Decrease)/increase in creditors
(3,380,430)
3,575,701

Corporation tax (paid)
(2,206,721)
(2,187,360)

Net cash generated from operating activities

15,459,264
3,068,831


Cash flows from investing activities

Purchase of tangible fixed assets
(16,803,443)
(10,126,008)

Sale of tangible fixed assets
-
12,315

Net cash from investing activities

(16,803,443)
(10,113,693)

Cash flows from financing activities

Issue of ordinary shares
-
8,600,000

New secured loans
8,504,225
9,352,670

Other new loans
4,643,679
2,549,899

Dividends paid
(10,784,125)
(17,621,234)

Interest paid
(940,863)
(674,613)

Net cash used in financing activities
1,422,916
2,206,722

Net increase/(decrease) in cash and cash equivalents
78,737
(4,838,140)

Cash and cash equivalents at beginning of year
(2,123)
4,836,017

Cash and cash equivalents at the end of year
76,614
(2,123)


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
76,614
60,063

Bank overdrafts
-
(62,186)

76,614
(2,123)


Page 18

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 APRIL 2024




At 1 May 2023
Cash flows
At 30 April 2024
£

£

£

Cash at bank and in hand

60,063

16,551

76,614

Bank overdrafts

(62,186)

62,186

-

Debt due after 1 year

(7,057,299)

(4,650,898)

(11,708,197)

Debt due within 1 year

(9,385,432)

(8,520,632)

(17,906,064)


(16,444,854)
(13,092,793)
(29,537,647)

The notes on pages 20 to 38 form part of these financial statements.

Page 19

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

1.


General information

Magna Specialist Confectioners Limited is a private company limited with ordinary share capital. The company was incorporated on 18 April 1972, having a a registered office address and principal place of business of Magna House, Stafford Park, Telford, TF3 3BH, with a registration number of 01050340. The company's principal activities and nature of its business are as shown in the strategic and directors reports which form part of this annual report and financial statements.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The financial statements have been prepared on a going concern basis. In drawing this conclusion the directors have considered the forecasts for the foreseeable future and any likely sensitivity that could be reasonably expected to occur. In addition they have considered the funding available to them and believe that there is sufficient headroom provided through existing cash and facilities. 

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 20

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Page 21

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.7

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 22

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
2% - 20% straight line
Plant and machinery
-
10% - 33% straight line
Motor vehicles
-
25% straight line
Fixtures and fittings
-
10% - 33% straight line
Freehold Land
-
not depreciated
Assets in the course of construction
-
not depreciated

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 23

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.17

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

Page 24

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.18

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.19

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The
Page 25

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)


2.19
Financial instruments (continued)

impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Page 26

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)


2.19
Financial instruments (continued)

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.20

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, which are described in note 2, the Directors are required to make judgments, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. During the year, the company reviewed its estimates containing depreciation, provisions, including accruals and prepayments and that of bad debts and no areas of material uncertainty were noted. 


4.


Turnover

The whole of the turnover is attributable to the manufacture of chocolate confectionery. 

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
139,383,189
110,052,515

Rest of Europe
12,729,475
12,300,230

152,112,664
122,352,745


Page 27

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Research & development charged as an expense
218,717
209,695

Exchange differences
(39,802)
37,894

Depreciation of tangible fixed assets
6,587,423
5,669,442

Defined contribution pension cost
439,797
444,811


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors and their associates:


2024
2023
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
25,000
18,700

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
16,605,696
15,221,278

Social security costs
1,533,186
1,412,199

Cost of defined contribution scheme
439,797
444,811

18,578,679
17,078,288


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Manufacturing
460
462



Administration
53
52

513
514

Page 28

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
889,862
841,624

889,862
841,624


The highest paid director received remuneration of £298,462 (2023 - £276,033).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2023 - £NIL).

The total accrued pension provision of the highest paid director at 30 April 2024 amounted to £NIL (2023 - £NIL).


9.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
484,114
405,811

Other interest payable
456,749
268,802

940,863
674,613

Page 29

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
1,142,450
480,261

Adjustments in respect of previous periods
888,546
1,674,617


2,030,996
2,154,878


Total current tax
2,030,996
2,154,878

Deferred tax


Origination and reversal of timing differences
3,349,611
2,032,946

Total deferred tax
3,349,611
2,032,946


Tax on profit
5,380,607
4,187,824

Factors affecting tax charge for the year

The tax assessed for the year is the same as (2023 - the same as) the standard rate of corporation tax in the UK of 25% (2023 - 25%) as set out below:

2024
2023
£
£


Profit on ordinary activities before tax
17,857,007
13,183,177


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
4,464,252
3,295,794

Effects of:


Capital allowances for year in excess of depreciation
(3,343,131)
(2,531,502)

Adjustments to tax charge in respect of prior periods - current tax
(38,855)
(92)

Adjustments to tax charge in respect of prior periods - prior periods
888,546
1,332,088

Other timing differences leading to an increase (decrease) in taxation
29,134
3,394

Other differences leading to an increase (decrease) in the tax charge
31,050
55,196

Deferred tax charge for the year
3,349,611
2,032,946

Total tax charge for the year
5,380,607
4,187,824

Page 30

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
 
10.Taxation (continued)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


11.


Dividends

2024
2023
£
£


Ordinary Shares - Foskett Capital Holdings Ltd & Blackladies Investment Ltd
10,784,125
17,621,234

10,784,125
17,621,234

Page 31

 


 
MAGNA SPECIALIST CONFECTIONERS LIMITED


 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024


12.


Tangible fixed assets






Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Other fixed assets

£
£
£
£
£



Cost or valuation


At 1 May 2023
10,043,751
87,520,303
378,952
3,528,051
6,913,828


Additions
199,909
6,167,083
156,107
264,971
10,015,373


Disposals
-
(1,059,680)
-
-
-



At 30 April 2024

10,243,660
92,627,706
535,059
3,793,022
16,929,201



Depreciation


At 1 May 2023
4,938,863
53,216,638
296,583
2,725,879
-


Charge for the year on owned assets
392,187
5,771,808
39,936
383,492
-


Disposals
-
(1,055,863)
-
-
-



At 30 April 2024

5,331,050
57,932,583
336,519
3,109,371
-



Net book value



At 30 April 2024
4,912,610
34,695,123
198,540
683,651
16,929,201



At 30 April 2023
5,104,888
34,303,665
82,369
802,172
6,913,828
Page 32

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

           12.Tangible fixed assets (continued)


Total

£



Cost or valuation


At 1 May 2023
108,384,885


Additions
16,803,443


Disposals
(1,059,680)



At 30 April 2024

124,128,648



Depreciation


At 1 May 2023
61,177,963


Charge for the year on owned assets
6,587,423


Disposals
(1,055,863)



At 30 April 2024

66,709,523



Net book value



At 30 April 2024
57,419,125



At 30 April 2023
47,206,922




The net book value of land and buildings may be further analysed as follows:


2024
2023
£
£

Freehold
4,912,610
5,104,888

4,912,610
5,104,888


Freehold property stated at histrorical cost.
Inlcuded in the freehold land and building is land at the purchase price of £309,092.
Included in the tangible fixed assets are assets under the cause of construction amounting to £16,929,201.
There were no capital commitments at the balance sheet date.

Page 33

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

13.


Fixed asset investments





Listed investments

£



Cost or valuation


At 1 May 2023
2,995



At 30 April 2024
2,995





14.


Stocks

2024
2023
£
£

Raw materials and consumables
1,735,781
1,505,907

Work in progress (goods to be sold)
4,517
45,406

Finished goods and goods for resale
47,501
60,923

1,787,799
1,612,236


Page 34

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

15.


Debtors

2024
2023
£
£


Trade debtors
34,044,226
29,050,941

Other debtors
1,147,900
2,088,802

Prepayments and accrued income
695,299
580,548

Tax recoverable
11,223
4,001

35,898,648
31,724,292



16.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
76,614
60,063

Less: bank overdrafts
-
(62,186)

76,614
(2,123)



17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
-
62,186

Bank loans
17,856,897
9,352,671

Trade creditors
5,567,813
8,758,384

Corporation tax
93,074
268,799

Other taxation and social security
2,439,675
2,420,153

Other creditors
1,868,368
1,824,412

Accruals and deferred income
88,614
341,948

27,914,441
23,028,553


Page 35

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

18.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Other loans
11,708,197
7,057,298

11,708,197
7,057,298


The above loans have an interest rate of 5% and 6%. Bank loans and overdrafts are secured over the whole assets of the company.


19.


Financial instruments

2024
2023
£
£

Financial assets


Financial assets measured at fair value through profit or loss
79,609
63,058




Financial assets measured at fair value through profit or loss comprise of cash movements in the bank.


20.


Deferred taxation




2024


£






At beginning of year
(7,029,629)


Charged to profit or loss
(3,349,611)



At end of year
(10,379,240)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(10,326,834)
(6,977,223)

Tax losses carried forward
(52,406)
(52,406)

(10,379,240)
(7,029,629)

Page 36

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

21.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



21,500 (2023 - 21,500) Ordinary A shares shares of £1.00 each
21,500
21,500
34,000 (2023 - 34,000) Ordinary B shares shares of £1.00 each
34,000
34,000
8,600,000 (2023 - 8,600,000) Preference shares of £1.00 each
8,600,000
8,600,000

8,655,500

8,655,500



22.


Reserves

Share premium account

In relation to shares issued at premium with the premium value shown in the share premium account

Profit and loss account

The profit or loss account includes all current and prior period retained profits or losses


23.


Pension commitments

The company operates three defined contribution pension schemes covering all senior and middle management and the permanently hourly paid personnel. The assets of each scheme are held separately from those of the company in independently administered funds.
The amount paid and charged to the profit or loss during the period was £439,797 (2023: £444,811). The unpaid contributions outstanding at the year end, included in accruals (note 17), amount to £Nil (2023: £26,608).


24.


Operating lease commitments

At 30 April 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
127,281
126,657

Within 1 to 2 years
127,281
124,941

Within 2 to 5 years
154,019
291,656

408,581
543,254

Page 37

 
MAGNA SPECIALIST CONFECTIONERS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

25.


Transactions with directors

During the period, one of the directors repaid/received a loan from the Company to the value of £23,376/£24,600. The balance outstanding at the period end is £764 (2023: £Nil). The maximum balance outstanding at any point in the period was £22,867.
During the period, one of the directors repaid/received a loan from the Company to the value of £556,842/£277,396. The balance outstanding at the period end is £34,531 (2023: £313,796). The maximum balance outstanding at any point in the period  was £556,842.
The above loans are none interest bearing and are repayable on demand and therefore there is no significant difference between the value of the original loan amount and the initial carrying value of the loan as shown in the balance sheet.


26.


Related party transactions

The Company has received loans from a UK Discretionary Trust of which the directors are likely to be the main beneficiaries. The loans are interest bearing at a rate of 5% (2023: 6%). The balance outstanding at the period end is £3,751,734 (2023: £2,821,693). Interest charged in the year amounted to £178,833 (2023: £161,693). 
The Company has received loans from a related party company. The loans are interest bearing at a rate of 6%. The balance outstanding at the period end is £7,901,497 (2023: £3,930,000) of which £7,780,000 is capital and £121,497 is accrued interest. Interest charged in the year amounted to £129,300 (2023: £71,573).
The Company has received loans from a related member of the directors to the value of £54,975 if which £52,979 is capital and £1,986 is accrued interest. The loans are interest bearing at a rate of 5%. The balance outstanding at the period end is £52,979 (2023: £Nil). Interest charges in the year amounted to £1,986 (2023: £Nil).
The above loans are not secured.


27.


Post balance sheet events

There have been no significant events affecting the Company since the year end.


28.


Controlling party

During the period the company had no controlling party.

 
Page 38