REGISTERED NUMBER: 13508558 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31 December 2024

for

MAGIC TECH LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

Directors:

V Bhanot

D Fisher

S Jindal

Secretary:

OHS Secretaries Limited

Registered office:

9th Floor

107 Cheapside

London

EC2V 6DN

Registered number:

13508558 (England and Wales)

Accountants:

Cooper Parry Advisory Limited

New Derwent House

69-73 Theobalds Road

London

WC1X 8TA

Fixed assets

Tangible assets

4

2,366

5,802

Current assets

Stocks

5

1,006,175

-

Debtors

6

399,632

173,504

Cash at bank

2,394,882

332,459

3,800,689

505,963

Creditors

Amounts falling due within one year

7

1,038,203

201,422

Net current assets

2,762,486

304,541

Total assets less current liabilities

2,764,852

310,343

Capital and reserves

Called up share capital

2

1

Share premium

4,252,530

1,196,654

Other reserves

71,228

221,926

Retained earnings

(1,558,908

)

(1,108,238

)

2,764,852

310,343

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

V Bhanot - Director

1.	Statutory information

Magic Tech Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

The financial statements have been prepared on the going concern basis. The company incurred losses during the year, however the directors believe that the company has sufficient financial resources to be able to meet its obligations, if and when they become due and that the company can continue in operational existence for a period of at least 12 months from the statement of financial position date. On this basis, the directors are of the opinion that they should continue to adopt the going concern basis in preparing the annual financial statements.

Key source of estimation, uncertainty and judgement

The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period.

There is estimation uncertainty in calculating depreciation. A full line by line review of fixed assets is carried out by management regularly. Whilst every attempt is made to ensure that the depreciation policy is as accurate as possible, there remains a risk that the policy does not match the useful life of the assets.

Share-based payments have been made to employees of the company. As disclosed in the Share-based payments accounting policy, the fair value of share options is recognised in the income statement. The fair value of share options is calculated using a Black-scholes model to calculate the fair value based on market prices paid for shares close to the time of options being granted.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover from sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

Straight line over 3 years

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts.

Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

Taxation

Taxation for the period comprises current tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Tax credits shown on the income statement represent tax credits received or receivable from HMRC as a result of claims made under HMRC’s R&D tax relief schemes.

Research and development

Revenue expenditure on research and development is written off in the period in which it is incurred.

The company makes claims under the SME R&D tax relief scheme. Tax credits arising from claims under the SME R&D tax relief scheme are reflected as a reduction in the Corporation Tax charge or, if loss making, as a Corporation Tax credit. Tax credits received or receivable from R&D claims are recognised in the reporting period in which the qualifying expenditure is incurred.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Share-based payments

The company provides share-based payment arrangements to certain employees. Equity-settled arrangements are measured at fair value (excluding the effect of non-market based vesting conditions) at the date of the grant. The fair value is expensed on a straight line basis over the vesting period. The amount recognised as an expense is adjusted to reflect the actual number of shares options that are expected to vest at the statement of financial position date.

Where equity-settled arrangements are modified, and are of benefit to the employee, the incremental fair value is recognised over the period from the date of modification to date of vesting. Where a modification is not beneficial to the employee there is no change to the charge for share-based payment. Settlements and cancellations are treated as an acceleration of vesting and the unvested amount is recognised immediately in the income statement.

3.	Employees and directors

The average number of employees during the year was 5 (2023 - 5 ) .

4.	Tangible fixed assets

Fixtures

and

fittings

£

Cost

At 1 January 2024

and 31 December 2024

10,308

Depreciation

At 1 January 2024

4,506

Charge for year

3,436

At 31 December 2024

7,942

Net book value

At 31 December 2024

2,366

At 31 December 2023

5,802

5.

Stocks

2024

2023

£

£

Stocks

1,006,175

-

6.

Debtors: amounts falling due within one year

2024

2023

£

£

Trade debtors

18,851

6,575

Other debtors

380,781

166,929

399,632

173,504

7.

Creditors: amounts falling due within one year

2024

2023

£

£

Trade creditors

346,929

69,580

Taxation and social security

147,742

66,551

Other creditors

543,532

65,291

1,038,203

201,422

8.	Ultimate controlling party

The directors are of the opinion that there is no ultimate controlling party.

9.	Share-based payment transactions

The company operates an EMI qualifying share option scheme and during the year the company granted 8,154 (2023: 57,079) EMI qualifying share options to employees at an average weighted exercise price of £0.2946 (2023: £0.2581) per share. During the year 12,401 share options vested (2023: 27,350), 0 lapsed (2023: 16,308) and no options were exercised (2023: 0). At the statement of financial position date, 23,443 vested share options remained exercisable (2023: 11,042) and 25,482 options had yet to vest (2023: 29,729). An amount of £16,470 has been charged to the income statement in respect of the EMI qualifying share options (2023: £29,538).

The company also operates an unapproved share option scheme and during the year the company granted 14,770 (2023: 0) unapproved share options to contractors at an average weighted exercise price of £0.0001 per share. During the year 14,770 share options vested (2023: 0), 0 lapsed (2023: 0) and no options were exercised (2023: 0). At the statement of financial position date, 14,770 vested share options remained exercisable (2023: 0) and 0 options had yet to vest (2023: 0). An amount of £42,832 has been charged to the income statement in respect of the unapproved share options (2023: £0).

The share options vest over a 4 year period and are exercisable over the company's Ordinary shares.