Company Registration No. 04669286 (England and Wales)
Magmatic Limited
Unaudited financial statements
for the year ended 30 June 2024
Pages for filing with the registrar
Magmatic Limited
Contents
Page
Statement of financial position
1
Notes to the financial statements
2 - 5
Magmatic Limited
Statement of financial position
As at 30 June 2024
1
2024
2023
Notes
£
£
£
£
Current assets
Debtors
4
10,249
Cash at bank and in hand
191,041
334,188
191,041
344,437
Creditors: amounts falling due within one year
5
(2,213,463)
(218,549)
Net current (liabilities)/assets
(2,022,422)
125,888
Creditors: amounts falling due after more than one year
6
(2,096,604)
Net liabilities
(2,022,422)
(1,970,716)
Capital and reserves
Called up share capital
1,315
1,315
Share premium account
2,703,582
2,703,582
Capital redemption reserve
35
35
Profit and loss reserves
(4,727,354)
(4,675,648)
Total equity
(2,022,422)
(1,970,716)
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 30 June 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 24 February 2025 and are signed on its behalf by:
Richard Dewhurst
Director
Company Registration No. 04669286
Magmatic Limited
Notes to the financial statements
For the year ended 30 June 2024
2
1
Accounting policies
Company information
Magmatic Limited is a private company limited by shares incorporated in England and Wales. The registered office is c/o Saffery LLP, St Catherine's Court, Berkeley Place, Clifton, Bristol, BS8 1BQ.
1.1
Reporting period
The comparative figures have been prepared for the 18 months ending 30 June 2023. The prior accounting period was extended to incorporate the sale of operations within the period. As a result, amounts presented in the comparative period, including related notes, are not entirely comparable to the current year end.
1.2
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.
1.3
Going concern
The accounts have been prepared on a basis other than going concern as a result of the sale of operations within the prior period.true
1.4
Turnover
Turnover represents net invoiced sales of goods, excluding value added tax.
Turnover is recognised on delivery to the customer in the UK and on the point of despatch to customers for international sales.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position 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 debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Magmatic Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
1
Accounting policies (continued)
3
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.11
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Magmatic Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
1
Accounting policies (continued)
4
1.12
Shareholder loans – the company's previous shareholders provided funding in previous years to expand the business and to support the development of new products. The shareholder loans of £2,205,139 (2023: £2,071,604) are due within 12 months of the reporting date.
During 2021 the loan notes were amended so that, the loan notes had the interest payments deferred until March 2023 and the capital repayments on the 2017 loan notes were delayed until January and March 2023.
The loan note holders agreed that no further interest was to be accrued from 31 January 2023 and agreed to wait for further capital repayments until the company is in a position to make them.
2
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
9
4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Other debtors
10,249
Magmatic Limited
Notes to the financial statements (continued)
For the year ended 30 June 2024
5
5
Creditors: amounts falling due within one year
2024
2023
£
£
Convertible loans
2,205,139
Trade creditors
37,589
Other creditors
8,324
180,960
2,213,463
218,549
6
Creditors: amounts falling due after more than one year
2024
2023
£
£
Convertible loans
2,071,604
Other creditors
25,000
2,096,604
7
Operating lease commitments
Lessee
During the period £nil was recognised as an expense in the profit and loss account in respect of operating leases (2023: £58,816).