Registered number:
FOR THE YEAR ENDED 30 APRIL 2024
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MAGNA SPECIALIST CONFECTIONERS LIMITED
COMPANY INFORMATION
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MAGNA SPECIALIST CONFECTIONERS LIMITED
CONTENTS
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MAGNA SPECIALIST CONFECTIONERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
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.
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.
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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
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MAGNA SPECIALIST CONFECTIONERS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
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
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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.
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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.
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.
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.
The directors who served during the year were:
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.
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.
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.
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MAGNA SPECIALIST CONFECTIONERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
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.
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.
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.
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.
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.
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MAGNA SPECIALIST CONFECTIONERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
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.
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.
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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.
There have been no significant events affecting the Company since the year end.
The auditors, Fraser Russell Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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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 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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MAGNA SPECIALIST CONFECTIONERS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAGNA SPECIALIST CONFECTIONERS LIMITED
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 policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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.
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.
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MAGNA SPECIALIST CONFECTIONERS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAGNA SPECIALIST CONFECTIONERS LIMITED (CONTINUED)
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 Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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.
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.
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.
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MAGNA SPECIALIST CONFECTIONERS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAGNA SPECIALIST CONFECTIONERS LIMITED (CONTINUED)
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
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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.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.
for and on behalf of
Statutory Auditor 77 Francis Road
Edgbaston
West Midlands
B16 8SP
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MAGNA SPECIALIST CONFECTIONERS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
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MAGNA SPECIALIST CONFECTIONERS LIMITED
REGISTERED NUMBER: 01050340
BALANCE SHEET
AS AT 30 APRIL 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 20 to 38 form part of these financial statements.
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MAGNA SPECIALIST CONFECTIONERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
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MAGNA SPECIALIST CONFECTIONERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
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MAGNA SPECIALIST CONFECTIONERS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
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MAGNA SPECIALIST CONFECTIONERS LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 APRIL 2024
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MAGNA SPECIALIST CONFECTIONERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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
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:
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.
Functional and presentation currency
Transactions and balances
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MAGNA SPECIALIST CONFECTIONERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
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MAGNA SPECIALIST CONFECTIONERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
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.
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MAGNA SPECIALIST CONFECTIONERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
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:
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.
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MAGNA SPECIALIST CONFECTIONERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
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MAGNA SPECIALIST CONFECTIONERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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
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MAGNA SPECIALIST CONFECTIONERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (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.
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MAGNA SPECIALIST CONFECTIONERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
The whole of the turnover is attributable to the manufacture of chocolate confectionery.
Analysis of turnover by country of destination:
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MAGNA SPECIALIST CONFECTIONERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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MAGNA SPECIALIST CONFECTIONERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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MAGNA SPECIALIST CONFECTIONERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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MAGNA SPECIALIST CONFECTIONERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
10.Taxation (continued)
There were no factors that may affect future tax charges.
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MAGNA SPECIALIST CONFECTIONERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
12.Tangible fixed assets (continued)
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MAGNA SPECIALIST CONFECTIONERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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MAGNA SPECIALIST CONFECTIONERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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MAGNA SPECIALIST CONFECTIONERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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MAGNA SPECIALIST CONFECTIONERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Share premium account
Profit and loss account
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).
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MAGNA SPECIALIST CONFECTIONERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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.
During the period the company had no controlling party.
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