Magnum Packaging (N.E.) Limited Company accounts

COMPANY REGISTRATION NUMBER: 01764041

Magnum Packaging (N.E.) Limited

Financial Statements

31 March 2025

Magnum Packaging (N.E.) Limited

Financial Statements

Year ended 31 March 2025

Contents	Page

Officers and professional advisers	1

Strategic report	2

Director's report	4

Independent auditor's report to the members	6

Profit and loss account	10

Balance sheet	11

Statement of cash flows	12

Notes to the financial statements	13

Magnum Packaging (N.E.) Limited

Officers and Professional Advisers

Director	Z H Younis

Registered office	Magnum House
	Macklin Avenue
	Cowpen Lane Industrial Estate
	Billingham
	TS23 4BY

Auditor	Chipchase Manners
	Chartered accountants & statutory auditors
	384 Linthorpe Road
	Middlesbrough
	TS5 6HA

Bankers	Lloyds Bank
	83-85 Linthorpe Road
	Middlesbrough
	TS1 5BU

Solicitors	Jacksons Law Firm
	17 Falcon Court
	Preston Farm Industrial Estate
	Stockton-on-Tees
	TS18 3TU

Magnum Packaging (N.E.) Limited

Strategic Report

Year ended 31 March 2025

Principal activities

The principal activity of the company is that of wholesale packaging merchants.

Key performance indicators

The straightforward trade of the company allows for the use of simple key performance indicators as follows:

	2025	2024
Turnover increase (%)	3	3
Gross profit margin (%)	28	28
Net profit margin (%)	–	(7)
Current ratio	1	1

Principal risks and uncertainties

The company conducts the sale of various types of packaging products from the premises at Macklin Avenue, which houses head offices and main warehouse facilities. The key business risks and uncertainties affecting the company are considered to relate to the competition in the industry, both locally and nationally. The company's directors are working to maintain the company's excellent reputation and are working to build on existing customer relationships whilst also developing new ones. The company has continued to grow in recent years despite the competition in the industry. The directors expected the growth to slow, but continue for the foreseeable future, which is evident in the current and previous year. This growth and financial success in recent years has allowed for the expansion of the clients premises to the facility in Billingham which has allowed the company to manage higher demand for its products and continue to increase both turnover and stock levels.

Interest risk

The company finances its activities, along with other financial assets and liabilities such as trade debtors and creditors, directly from the company's operating activities. The company does not enter into interest rate swaps and does not trade in financial instruments. The company does not seek to hedge any transactions and no trading in derivative financial instruments is undertaken. The overall level of interest risk is low.

Currency risk

The company's reporting currency is GBP but it transacts in foreign currencies with a range of customers who operate with both Euros and US Dollars. Fluctuations in value between GBP, the Euro and US Dollars may affect the company's revenues and operating profits. The company does not seek to mitigate currency risks through hedging to limit foreign currency transaction exposure as this exposure is not deemed by the directors to be a significant risk. Recent results have been reasonable with exchange rate losses on the accounts not being material in nature.

Liquidity risk

The risk of financial loss due to counterpart failure to honour its obligations is principally in relation to transactions where the company provides goods and services. Company policies are aimed at minimising such losses, and require that terms are only granted to customers who demonstrate an appropriate payment history and satisfy creditworthiness procedures. Individual exposures are monitored to ensure that the company's exposure to bad debts is not significant. The company seeks to mitigate liquidity risk by managing cash generation in its operations and applying cash collection targets.

Going concern

The company's business activities together with the factors likely to affect its future development, its financial position, financial risk management objectives and its exposures to price, credit, liquidity and cash flow risk are described in the business review above. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly they continue to adopt the going concern basis in preparing the annual report and accounts.

Future developments

The directors created the Magnum Holdings UK Limited Group, of which Magnum Packaging (N.E) Limited is a wholly owned subsidiary. The purpose of this is to ensure the only trade of Magnum Packaging (N.E) Limited is that of wholesale packaging merchants, with the investment property management trade being performed in a separate company within the group. Ultimately, the directors intend to push growth as they have done in the recent past.

Results and dividends

EBITDA for the period equated to £414,265 (2024: £932,873). Particulars of dividends paid are detailed in the notes to the financial statements.

This report was approved by the board of directors on 5 November 2025 and signed on behalf of the board by:

Z H Younis
Director

Registered office:

Magnum House

Macklin Avenue

Cowpen Lane Industrial Estate

Billingham

TS23 4BY

Magnum Packaging (N.E.) Limited

Director's Report

Year ended 31 March 2025

The director presents his report and the financial statements of the company for the year ended 31 March 2025 .

Director

The director who served the company during the year was as follows:

Z H Younis

Dividends

Particulars of recommended dividends are detailed in note 12 to the financial statements.

Future developments

The directors of the company intend to promote steady growth for the foreseeable future.

Financial instruments

There have been no financial instruments considered to be non-basic in use during the year.

Director's responsibilities statement

The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the director is required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The director is 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 enable them to ensure that the financial statements comply with the Companies Act 2006. He is 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.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 5 November 2025 and signed on behalf of the board by:

Z H Younis
Director

Registered office:

Magnum House

Macklin Avenue

Cowpen Lane Industrial Estate

Billingham

TS23 4BY

Magnum Packaging (N.E.) Limited

Independent Auditor's Report to the Members of Magnum Packaging (N.E.) Limited

Year ended 31 March 2025

Opinion

We have audited the financial statements of Magnum Packaging (N.E.) Limited (the 'company') for the year ended 31 March 2025 which comprise the profit and loss account, balance sheet, statement of cash flows 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 FRS 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 31 March 2025 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's 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 UK, including the FRC’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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinions 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the director's 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 director's 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 director's remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of the director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's 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 auditor’s 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: The objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud or error. It is also our objective to obtain sufficient appropriate audit evidence regarding the risks we have assessed and respond as appropriate to them. Even though an audit is planned and performed in accordance with the ISAs (UK), an audit has an unavoidable risk that material misstatements in the financial statements may not be detected. In identifying and assessing the risk of material misstatement in respect of irregularities, including fraud, our audit procedures included the following: - We obtained an understanding of the legal and regulatory frameworks applicable to the company and the environment in which they operate. - We obtained an understanding of how the company ensures their compliance with the applicable legal and regulatory frameworks through inquiries to the management and those charged with ensuring such compliance within the company. We corroborated our inquiries through a review of transactions within the financial statements that were linked to compliance with laws and regulations. We also reviewed any available board minutes. - We assessed the susceptibility of the company's financial statements to material misstatement with regards to how fraud might occur. Audit procedures performed by the team included: - Identifying and assessing the effectiveness of controls the management of the company has in place to detect and prevent possible fraud; - Understanding how those involved with ensuring compliance considered and addressed the potential override of controls or undue influence over the financial reports; - Challenging any major assumptions and judgements that the management used in any significant accounting estimates; - Reviewing journal entries made with emphasis placed on those with unusual combinations and those around the accounting year end: and - Assessing the extent of compliance with applicable laws and regulations. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director. - Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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 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 auditor's 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.

Christopher Gorman FCA FCCA

(Senior Statutory Auditor)

For and on behalf of

Chipchase Manners

Chartered accountants & statutory auditors

384 Linthorpe Road

Middlesbrough

TS5 6HA

5 November 2025

Magnum Packaging (N.E.) Limited

Profit and Loss Account

Year ended 31 March 2025

		2025	2024
Note		£	£
Turnover	4	42,774,039	41,372,706

Cost of sales	( 30,743,077)	( 31,478,364)
	-------------	-------------
Gross profit	12,030,962	9,894,342

Distribution costs		( 5,783,575)	( 4,002,315)
Administrative expenses		( 6,017,123)	( 8,440,661)
		-------------	------------
Operating profit/(loss)	5	230,264	( 2,548,634)

Other interest receivable and similar income	9	1,311	–
Interest payable and similar expenses	10	( 75,142)	( 40,686)
		-------------	------------
Profit/(loss) before taxation		156,433	( 2,589,320)

Tax on profit/(loss)	11	( 39,494)	( 158,611)
		---------	------------
Profit/(loss) for the financial year and total comprehensive income		116,939	( 2,747,931)
		---------	------------

Dividends paid and payable	12	( 100,000)	( 3,450,000)

Retained earnings at the start of the year	529,852	6,727,783
	---------	------------
Retained earnings at the end of the year	546,791	529,852
	---------	------------

All the activities of the company are from continuing operations.

Magnum Packaging (N.E.) Limited

Balance Sheet

31 March 2025

	2025		2024
Note	£	£	£

Fixed assets

Tangible assets	13		275,660	708,282

Current assets

Stocks	14	6,002,710	6,312,590
Debtors	15	6,417,803	5,908,166
Cash at bank and in hand		1,757,588	2,129,589
		-------------	-------------
		14,178,101	14,350,345

Creditors: amounts falling due within one year	16	( 13,814,992)		( 14,119,362)
		-------------		-------------
Net current assets			363,109	230,983
			---------	---------
Total assets less current liabilities			638,769	939,265

Creditors: amounts falling due after more than one year	17		( 66,667)	( 353,737)

Provisions

Taxation including deferred tax	19	( 25,211)	( 55,576)
		---------	---------
Net assets		546,891	529,952
		---------	---------

Capital and reserves

Called up share capital	23	100	100
Profit and loss account	24	546,791	529,852
		---------	---------
Shareholders funds		546,891	529,952
		---------	---------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 5 November 2025 , and are signed on behalf of the board by:

Z H Younis
Director

Company registration number: 01764041

Magnum Packaging (N.E.) Limited

Statement of Cash Flows

Year ended 31 March 2025

	2025	2024
	£	£

Cash flows from operating activities

Profit/(loss) for the financial year	116,939	( 2,747,931)

Adjustments for:
Depreciation of tangible assets	77,796	193,209
Other interest receivable and similar income	( 1,311)	–
Interest payable and similar expenses	75,142	40,686
Loss on disposal of tangible assets	106,205	–
Tax on profit/(loss)	39,494	158,611
Accrued expenses	6,686	4,783

Changes in:
Stocks	309,880	( 2,035,754)
Trade and other debtors	( 509,637)	3,983,633
Trade and other creditors	429,986	6,868,921
	---------	------------
Cash generated from operations	651,180	6,466,158

Interest paid	( 75,142)	( 40,686)
Interest received	1,311	–
Tax paid	( 182,379)	( 185,738)
	---------	------------
Net cash from operating activities	394,970	6,239,734
	---------	------------

Cash flows from investing activities

Purchase of tangible assets	( 51,379)	( 369,279)
Proceeds from sale of tangible assets	300,000	–
	---------	------------
Net cash from/(used in) investing activities	248,621	( 369,279)
	---------	------------

Cash flows from financing activities

Repayment of borrowings	( 100,000)	( 6,585,775)
Repayment of borrowings from group undertakings	( 550,000)	3,100,000
Payments of finance lease liabilities	( 265,592)	145,756
Dividends paid	( 100,000)	( 3,450,000)
	------------	------------
Net cash used in financing activities	( 1,015,592)	( 6,790,019)
	------------	------------

Net decrease in cash and cash equivalents	( 372,001)	( 919,564)
Cash and cash equivalents at beginning of year	2,129,589	3,049,153
	------------	------------
Cash and cash equivalents at end of year	1,757,588	2,129,589
	------------	------------

Magnum Packaging (N.E.) Limited

Notes to the Financial Statements

Year ended 31 March 2025

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Magnum House, Macklin Avenue, Cowpen Lane Industrial Estate, Billingham, TS23 4BY.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: Disclosures in respect of financial instruments have not been presented as there were none used that were non-basic in the year. No disclosure has been given for the aggregate remuneration of key management personnel as they are the same individuals as the directors.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant and machinery	-	25% reducing balance
Fixtures and fittings	-	25% reducing balance
Motor vehicles	-	25% reducing balance

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the balance sheet as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the balance sheet and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

4. Turnover

Turnover arises from:

	2025	2024
	£	£
Sale of goods	42,774,039	41,372,706
	-------------	-------------

The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:

	2025	2024
	£	£
United Kingdom	40,942,894	39,617,423
Overseas	1,831,145	1,755,283
	-------------	-------------
	42,774,039	41,372,706
	-------------	-------------

5. Operating profit/(loss)

Operating profit or loss is stated after charging:

	2025	2024
	£	£
Depreciation of tangible assets	77,796	193,209
Loss on disposal of tangible assets	106,205	–
Impairment of trade debtors	6,927	6,847
	---------	---------

6. Auditor's remuneration

	2025	2024
	£	£
Fees payable for the audit of the financial statements	17,500	16,000
	--------	--------

7. Staff costs

The average number of persons employed by the company during the year, including the director, amounted to:

	2025	2024
	No.	No.
Management staff	2	2
Other employees	110	97
	----	----
	112	99
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2025	2024
	£	£
Wages and salaries	2,956,193	2,367,257
Social security costs	245,830	204,487
Other pension costs	27,369	49,882
	------------	------------
	3,229,392	2,621,626
	------------	------------

8. Director's remuneration

The director's aggregate remuneration in respect of qualifying services was:

	2025	2024
	£	£
Remuneration	180,000	152,500
	---------	---------

9. Other interest receivable and similar income

	2025	2024
	£	£
Interest on cash and cash equivalents	1,311	–
	-------	----

10. Interest payable and similar expenses

	2025	2024
	£	£
Interest on banks loans and overdrafts	18,440	23,178
Interest on obligations under finance leases and hire purchase contracts	56,702	17,508
	--------	--------
	75,142	40,686
	--------	--------

11. Tax on profit/(loss)

Major components of tax expense

	2025	2024
	£	£

Current tax:

UK current tax expense	69,859	182,379

Deferred tax:

Origination and reversal of timing differences	( 30,365)	( 23,768)
	--------	---------
Tax on profit/(loss)	39,494	158,611
	--------	---------

Reconciliation of tax expense

The tax assessed on the profit/(loss) on ordinary activities for the year is higher than (2024: higher than) the standard rate of corporation tax in the UK of 25 % (2024: 25 %).

	2025	2024
	£	£
Profit/(loss) on ordinary activities before taxation	156,433	( 2,589,320)
	---------	------------
Profit/(loss) on ordinary activities by rate of tax	39,108	( 647,330)
Effect of expenses not deductible for tax purposes	26,936	491
Effect of capital allowances and depreciation	3,815	23,767
Utilisation of tax losses	–	( 16,624)
Deferred tax movement	( 30,365)	( 23,768)
Effect of intercompany balance written off not deductible	–	822,075
	---------	------------
Tax on profit/(loss)	39,494	158,611
	---------	------------

12. Dividends

	2025	2024
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )	100,000	3,450,000
	---------	------------

13. Tangible assets

	Plant and machinery	Fixtures and fittings	Motor vehicles	Total
	£	£	£	£
Cost
At 1 April 2024	716,236	482,023	638,086	1,836,345
Additions	7,500	43,879	–	51,379
Disposals	–	–	( 530,711)	( 530,711)
	---------	---------	---------	------------
At 31 March 2025	723,736	525,902	107,375	1,357,013
	---------	---------	---------	------------
Depreciation
At 1 April 2024	548,746	396,121	183,196	1,128,063
Charge for the year	43,591	22,034	12,171	77,796
Disposals	–	–	( 124,506)	( 124,506)
	---------	---------	---------	------------
At 31 March 2025	592,337	418,155	70,861	1,081,353
	---------	---------	---------	------------
Carrying amount
At 31 March 2025	131,399	107,747	36,514	275,660
	---------	---------	---------	------------
At 31 March 2024	167,490	85,902	454,890	708,282
	---------	---------	---------	------------

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

	Motor vehicles
	£
At 31 March 2025	–
	----
At 31 March 2024	214,267
	---------

14. Stocks

	2025	2024
	£	£
Finished goods and goods for resale	6,002,710	6,312,590
	------------	------------

15. Debtors

	2025	2024
	£	£
Trade debtors	6,399,906	5,889,406
Prepayments and accrued income	17,897	15,206
Other debtors	–	3,554
	------------	------------
	6,417,803	5,908,166
	------------	------------

16. Creditors: amounts falling due within one year

	2025	2024
	£	£
Bank loans and overdrafts	100,000	100,000
Trade creditors	1,928,991	1,026,212
Amounts owed to group undertakings	2,783,400	3,333,400
Accruals and deferred income	25,469	18,783
Corporation tax	69,859	182,379
Social security and other taxes	1,136,001	1,631,111
Obligations under finance leases and hire purchase contracts	–	78,522
Other creditors	7,771,272	7,748,955
	-------------	-------------
	13,814,992	14,119,362
	-------------	-------------

17. Creditors: amounts falling due after more than one year

	2025	2024
	£	£
Bank loans and overdrafts	66,667	166,667
Obligations under finance leases and hire purchase contracts	–	187,070
	--------	---------
	66,667	353,737
	--------	---------

18. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	2025	2024
	£	£
Not later than 1 year	–	78,522
Later than 1 year and not later than 5 years	–	187,070
	----	---------
	–	265,592
	----	---------

19. Provisions

	Deferred tax (note 20)
	£
At 1 April 2024	55,576
Unused amounts reversed	( 30,365)
	--------
At 31 March 2025	25,211
	--------

20. Deferred tax

The deferred tax included in the balance sheet is as follows:

	2025	2024
	£	£
Included in provisions (note 19)	25,211	55,576
	--------	--------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2025	2024
	£	£
Accelerated capital allowances	25,211	55,576
	--------	--------

21. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 27,369 (2024: £ 49,882 ).

22. Financial instruments

The company has not used any non-basic financial instruments in the year.

23. Called up share capital

Issued, called up and fully paid

	2025		2024
	No.	£	No.	£
Ordinary shares of £ 1 each	100	100	100	100
	----	----	----	----

24. Reserves

Profit and loss account - This reserve records retained earnings and accumulated losses.

25. Analysis of changes in net debt

	At 1 Apr 2024	Cash flows	At 31 Mar 2025
	£	£	£
Cash at bank and in hand	2,129,589	(372,001)	1,757,588
Debt due within one year	(3,511,922)	628,522	(2,883,400)
Debt due after one year	(353,737)	287,070	(66,667)
	------------	---------	------------
	( 1,736,070)	543,591	( 1,192,479)
	------------	---------	------------

26. Contingent liabilities

On 15 July 2024, HMRC issued an assessment against the company in respect of Plastic Packaging Tax (PPT) which covered a period inclusive of the year ended 31 March 2024. The director has appealed the assessment. The outcome of the appeal is not yet known at the date of these financial statements. Given the uncertainty over the amount (if any) and timing of any possible tax liabilities, no provision has been made in the accounts for the year ended 31 March 2025.

27. Director's advances, credits and guarantees

There have been no directors' advances, credits or guarantees in the year.

28. Related party transactions

During the year the company had purchases from Magnum Investments (NE) Limited totalling £600,000 (2024: £600,000). These were for the rental of properties. At the year end the company was due nil (2024: nil) from Magnum Investments (NE) Limited. During the year the company proposed a dividend of £100,000 (2024: £3,450,000) to Magnum Holdings UK Limited, the parent company. At the year end the company owed £2,783,400 (2024: £3,333,400) to Magnum Holdings UK Limited. All transactions between the companies in the Magnum Holdings UK Limited (ultimate parent company) group are undertaken on an arms-length basis and under normal commercial terms. Loans to shareholders totalling £7,637,603 (2024: £7,740,700) are represented in Other Creditors on the financial statements.

Magnum Packaging (N.E.) Limited

Notes to the Financial Statements (continued)

Year ended 31 March 2025

29. Controlling party

At the year end, there overall controlling party was Mr M Younis by virtue of his majority shareholding in the parent company Magnum Holdings UK Limited.