MAG Group Limited - Limited company accounts 23.1
MAG Group Limited - Limited company accounts 23.1
REGISTERED NUMBER: 04577893 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 30 November 2022 |
for |
MAG GROUP LIMITED |
MAG GROUP LIMITED (REGISTERED NUMBER: 04577893) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30 November 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Statement of Comprehensive Income | 7 |
Consolidated Balance Sheet | 8 |
Company Balance Sheet | 9 |
Consolidated Statement of Changes in Equity | 10 |
Company Statement of Changes in Equity | 11 |
Consolidated Cash Flow Statement | 12 |
Notes to the Consolidated Financial Statements | 13 |
MAG GROUP LIMITED |
Company Information |
for the Year Ended 30 November 2022 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Lloyds Bank Chambers |
Hustlergate |
Bradford |
BD1 1UQ |
MAG GROUP LIMITED (REGISTERED NUMBER: 04577893) |
Group Strategic Report |
for the Year Ended 30 November 2022 |
The directors present their strategic report of the company and the group for the year ended 30 November 2022. |
GROUP ACTIVITIES |
The group's principal activities comprise the supply of construction goods, the manufacture, installation and sale of plaster and Jesmonite mouldings, the supply of bathroom equipment and the sale and hire of construction and safety equipment. |
BUSINESS REVIEW |
The group profit after taxation attributable to members for the year amounted to £3,137,928 - 2021: £2,540,232. |
The key financial performance indicators were as follows: |
2022 | 2021 |
£ | £ |
Group turnover | 27,785,654 | 23,367,089 |
Gross profit margin | 39.1% | 37.5% |
Operating profit | 3,871,119 | 3,165,110 |
Cash generated from operations | 4,920,306 | 4,032,733 |
Group turnover was approximately 19% ahead of the previous year. All group businesses contributed to an increase in the gross profit margin percentage. The group's operations continued to generate cash and at the year end cash at bank stood at approximately £12.8m. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group's businesses operate in separate markets, so that the impact of factors affecting the long term performance of individual businesses on the group's results is mitigated. However, all group businesses are primarily construction or property related and are subject to the risks associated with a significant downturn in those sectors. To mitigate these risks, the group looks to build strong customer relationships and to constantly improve, develop and source new products to compete effectively in the ever-changing marketplace. |
ON BEHALF OF THE BOARD: |
9 June 2023 |
MAG GROUP LIMITED (REGISTERED NUMBER: 04577893) |
Report of the Directors |
for the Year Ended 30 November 2022 |
The directors present their report and the financial statements for the year ended 30 November 2022. |
DIVIDENDS |
An interim dividend totalling £1,000,000 was paid by credit to shareholders' accounts during the year. It is not proposed to declare a final dividend in respect of the year ended 30 November 2022. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 December 2021 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Rawse, Varley & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
BY ORDER OF THE BOARD: |
Report of the Independent Auditors to the Members of |
MAG Group Limited |
Opinion |
We have audited the financial statements of MAG Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2022 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Financial Statements, 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). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 November 2022 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 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 group's and the parent 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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 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. |
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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
MAG Group Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
MAG Group Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Based on our understanding of the group, the parent company and the sectors in which they operate, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK law, including laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated the extent to which non-compliance might have a material effect on the financial statements and evaluated incentives and opportunities for fraudulent manipulation, including the risk of override of controls. We determined that the principal risks were related to inappropriate or unusual journal entries outside the usual course of business and at financial year end, management bias in accounting estimates and judgmental areas of the financial statements. Audit procedures performed in response to our evaluation included: |
- reviewing the disclosures in the financial statements and testing to supporting documentation to assess |
compliance with the provisions of relevant laws and regulations, including in particular that income was fully |
recorded, appropriately recognised and correctly matched with related costs; |
- enquiring of management about existing and potential litigation and claims and known or suspected instances of |
non-compliance with laws and regulations and fraud; |
- addressing the risk of fraud through management override of controls by testing the appropriateness of journal |
entries including year end adjustments; |
- challenging assumptions and judgments made by management in determining accounting estimates; |
- evaluating the business rationale of any significant transactions that are unusual or outside the normal course of |
business. |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud rather than error is higher, as fraud often involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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 Report of the Auditors. |
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 a Report of the Auditors 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 |
Bradford |
MAG GROUP LIMITED (REGISTERED NUMBER: 04577893) |
Consolidated Statement of Comprehensive Income |
for the Year Ended 30 November 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 | 27,785,654 | 23,367,089 |
Cost of sales | 16,913,923 | 14,604,767 |
GROSS PROFIT | 10,871,731 | 8,762,322 |
Distribution costs | 802,344 | 801,090 |
Administrative expenses | 6,198,268 | 4,832,707 |
7,000,612 | 5,633,797 |
3,871,119 | 3,128,525 |
Other operating income | - | 36,585 |
OPERATING PROFIT | 6 | 3,871,119 | 3,165,110 |
Interest receivable and similar income | 30,515 | 284 |
3,901,634 | 3,165,394 |
Gain/loss on revaluation of investments | (11,592 | ) | - |
3,890,042 | 3,165,394 |
Interest payable and similar expenses | 7 | 3,373 | - |
PROFIT BEFORE TAXATION | 3,886,669 | 3,165,394 |
Tax on profit | 8 | 748,741 | 625,162 |
PROFIT FOR THE FINANCIAL YEAR |
MAG GROUP LIMITED (REGISTERED NUMBER: 04577893) |
Consolidated Balance Sheet |
30 November 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | - | 14,512 |
Tangible assets | 12 | 1,204,973 | 1,272,794 |
Investments | 13 | - | - |
1,204,973 | 1,287,306 |
CURRENT ASSETS |
Stock | 14 | 1,332,679 | 1,071,429 |
Debtors | 15 | 4,487,449 | 4,773,634 |
Investments | 16 | 88,451 | - |
Cash at bank | 12,808,999 | 9,245,725 |
18,717,578 | 15,090,788 |
CREDITORS |
Amounts falling due within one year | 17 | 7,446,953 | 6,051,355 |
NET CURRENT ASSETS | 11,270,625 | 9,039,433 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
12,475,598 |
10,326,739 |
PROVISIONS FOR LIABILITIES | 19 | 111,793 | 100,862 |
NET ASSETS | 12,363,805 | 10,225,877 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 3,000 | 3,000 |
Capital redemption reserve | 21 | 2,000 | 2,000 |
Merger reserve | 21 | 1,871,000 | 1,871,000 |
Other reserves | 21 | 20,000 | 20,000 |
Retained earnings | 21 | 10,467,805 | 8,329,877 |
SHAREHOLDERS' FUNDS | 12,363,805 | 10,225,877 |
The financial statements were approved by the Board of Directors and authorised for issue on 9 June 2023 and were signed on its behalf by: |
G C S Gates - Director |
MAG GROUP LIMITED (REGISTERED NUMBER: 04577893) |
Company Balance Sheet |
30 November 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Debtors | 15 |
Investments | 16 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 19 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Capital redemption reserve | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,629,721 | 1,410,482 |
The financial statements were approved by the Board of Directors and authorised for issue on |
MAG GROUP LIMITED (REGISTERED NUMBER: 04577893) |
Consolidated Statement of Changes in Equity |
for the Year Ended 30 November 2022 |
Called up | Capital |
share | Retained | redemption | Merger |
capital | earnings | reserve | reserve |
£ | £ | £ | £ |
Balance at 1 December 2020 | 3,000 | 5,789,645 | 2,000 | 1,871,000 |
Changes in equity |
Total comprehensive income | - | 2,540,232 | - | - |
Balance at 30 November 2021 | 3,000 | 8,329,877 | 2,000 | 1,871,000 |
Changes in equity |
Total comprehensive income | - | 3,137,928 | - | - |
Dividends | - | (1,000,000 | ) | - | - |
Balance at 30 November 2022 | 3,000 | 10,467,805 | 2,000 | 1,871,000 |
Other | Non-controlling | Total |
reserves | Total | interests | equity |
£ | £ | £ | £ |
Balance at 1 December 2020 | 20,000 | 7,685,645 | - | 7,685,645 |
Changes in equity |
Total comprehensive income | - | 2,540,232 | - | 2,540,232 |
Balance at 30 November 2021 | 20,000 | 10,225,877 | - | 10,225,877 |
Changes in equity |
Total comprehensive income | - | 3,137,928 | - | 3,137,928 |
Dividends | - | (1,000,000 | ) | - | (1,000,000 | ) |
Balance at 30 November 2022 | 20,000 | 12,363,805 | - | 12,363,805 |
MAG GROUP LIMITED (REGISTERED NUMBER: 04577893) |
Company Statement of Changes in Equity |
for the Year Ended 30 November 2022 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 December 2020 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 November 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 30 November 2022 |
MAG GROUP LIMITED (REGISTERED NUMBER: 04577893) |
Consolidated Cash Flow Statement |
for the Year Ended 30 November 2022 |
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 26 | 4,920,306 | 4,032,733 |
Interest paid | (3,373 | ) | - |
Tax paid | (1,016,645 | ) | (383,015 | ) |
Net cash from operating activities | 3,900,288 | 3,649,718 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (361,486 | ) | (573,452 | ) |
Sale of tangible fixed assets | 94,000 | 35,000 |
Interest received | 30,472 | 284 |
Net cash from investing activities | (237,014 | ) | (538,168 | ) |
Cash flows from financing activities |
Purchase of current asset investment | (100,000 | ) | - |
Net cash from financing activities | (100,000 | ) | - |
Increase in cash and cash equivalents | 3,563,274 | 3,111,550 |
Cash and cash equivalents at beginning of year |
27 |
9,245,725 |
6,134,175 |
Cash and cash equivalents at end of year | 27 | 12,808,999 | 9,245,725 |
MAG GROUP LIMITED (REGISTERED NUMBER: 04577893) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 November 2022 |
1. | STATUTORY INFORMATION |
MAG Group Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Group turnover |
Group turnover represents the sales value of goods and services supplied for the year including revenue recognised as earned on incomplete contracts, less returns and excluding value added tax and sales between companies in the group. |
Consolidation |
The group financial statements combine the financial statements of MAG Group Limited and its subsidiaries made up to 30 November each year. |
Goodwill arising on consolidation, which represents the excess of the cost of shares in subsidiaries over the fair value of net assets acquired, is capitalised and amortised over its estimated useful economic life of 20 years. Goodwill arising on past acquisitions by subsidiaries has been eliminated against reserves. |
Tangible fixed assets |
Tangible fixed assets are stated at cost less depreciation. |
Depreciation is calculated to write off the assets over their expected useful lives at the following annual rates: |
Short leasehold improvements 10% - 25% of cost |
Plant, equipment and fittings 15%, 20% or 50% of cost |
Motor vehicles 25% of cost |
Stock |
Stock is stated at the lower of cost and net realisable value. In the case of finished manufactured stock, cost includes an appropriate proportion of manufacturing overheads. |
Current asset investments |
Investments are stated at fair value. Unquoted fund investments are valued by reference to daily prices advised by fund managers. |
Changes in the valuation of investments are taken to profit and loss in the income statement. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred 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 balance sheet date. |
MAG GROUP LIMITED (REGISTERED NUMBER: 04577893) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2022 |
2. | ACCOUNTING POLICIES - continued |
Deferred taxation |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension contributions |
Contributions payable to defined contribution pension schemes are charged to profit and loss account when incurred. |
Contract revenue recognition |
Revenue relating to contracts is recognised as earned when and to the extent that the company obtains the right to consideration in exchange for the supply of goods and performance of services under contracts with customers. Revenue is generally recognised as contract activity progresses, such that for incomplete contracts it reflects the partial performance of contractual obligations. |
The amount of profit recognised on incomplete contracts is the lower of profit earned to date and the appropriate proportion of profit expected at completion. Full provision is made for known or expected losses at completion immediately such losses are identified. |
The amount by which revenue recognised on incomplete contracts exceeds payments received on account is classified in the balance sheet as "Amounts recoverable on contracts". |
Investment in subsidiaries |
Investments in subsidiaries are stated in the company's balance sheet at cost less provisions for permanent diminution in value assessed on an annual basis. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the group. |
An analysis of turnover by class of business is given below: |
2022 | 2021 |
£ | £ |
Bathroom fittings | 3,073,907 | 3,178,365 |
Plaster and Jesmonite moulding | 5,478,475 | 5,035,148 |
Construction and safety goods | 19,233,272 | 15,153,576 |
27,785,654 | 23,367,089 |
A geographical analysis of turnover is not presented as, in the opinion of the directors, to do so would be seriously prejudicial to the interests of the group. |
MAG GROUP LIMITED (REGISTERED NUMBER: 04577893) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2022 |
4. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries | 5,044,969 | 3,864,525 |
Social security costs | 674,639 | 485,068 |
Other pension costs | 58,017 | 56,788 |
5,777,625 | 4,406,381 |
The average number of employees during the year was as follows: |
2022 | 2021 |
Group administration | 14 | 13 |
Bathroom fittings | 6 | 8 |
Plaster and Jesmonite mouldings | 34 | 34 |
Construction goods and equipment | 9 | 10 |
5. | DIRECTORS' EMOLUMENTS |
2022 | 2021 |
£ | £ |
Directors' remuneration | 2,778,039 | 1,682,746 |
Directors' pension contributions to money purchase schemes | 3,120 | 3,120 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 3 | 3 |
Information regarding the highest paid director is as follows: |
2022 | 2021 |
£ | £ |
Emoluments etc | 1,615,028 | 743,919 |
Pension contributions to money purchase schemes | 1,560 | 1,560 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2022 | 2021 |
£ | £ |
Depreciation - owned assets | 357,384 | 363,556 |
Profit on disposal of fixed assets | (22,077 | ) | (19,388 | ) |
Goodwill amortisation | 14,512 | 14,519 |
Auditors' remuneration | 52,064 | 51,030 |
Foreign exchange differences | 472 | 440 |
Operating lease charges - land and buildings | 128,933 | 128,933 |
Operating lease charges - equipment and vehicles | 27,944 | 15,229 |
Hire of plant and equipment | 76,968 | 105,456 |
MAG GROUP LIMITED (REGISTERED NUMBER: 04577893) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2022 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Sundry interest payable | 3,373 | - |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax | 737,810 | 594,761 |
Deferred tax: |
Origination and reversal of |
timing differences | 10,931 | 30,401 |
Tax on profit | 748,741 | 625,162 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2022 | 2021 |
£ | £ |
Profit before tax | 3,886,669 | 3,165,394 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
738,467 |
601,425 |
Effects of: |
Expenses not deductible for tax purposes | 13,900 | 12,307 |
Income not taxable for tax purposes | (8 | ) | - |
Non-reversing capital allowances | (7,712 | ) | (10,404 | ) |
Tax at higher rates | 4,094 | 21,834 |
Total tax charge | 748,741 | 625,162 |
9. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
10. | DIVIDENDS |
2022 | 2021 |
£ | £ |
Ordinary shares of 1 each |
Interim | 1,000,000 | - |
MAG GROUP LIMITED (REGISTERED NUMBER: 04577893) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2022 |
11. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 December 2021 |
and 30 November 2022 | 290,373 |
AMORTISATION |
At 1 December 2021 | 275,861 |
Amortisation for year | 14,512 |
At 30 November 2022 | 290,373 |
NET BOOK VALUE |
At 30 November 2022 | - |
At 30 November 2021 | 14,512 |
Goodwill arose on the acquisition of MAG KB Limited. |
In addition goodwill of £3,508 on past acquisitions by MAG KB Limited remains eliminated against reserves. |
12. | TANGIBLE FIXED ASSETS |
Group |
Plant, |
Short | equipment |
leasehold | and | Motor |
improvements | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 December 2021 | 1,039,514 | 2,612,596 | 573,734 | 4,225,844 |
Additions | 35,942 | 162,816 | 162,728 | 361,486 |
Disposals | - | - | (125,714 | ) | (125,714 | ) |
At 30 November 2022 | 1,075,456 | 2,775,412 | 610,748 | 4,461,616 |
DEPRECIATION |
At 1 December 2021 | 670,404 | 2,138,556 | 144,090 | 2,953,050 |
Charge for year | 105,438 | 179,862 | 72,084 | 357,384 |
Eliminated on disposal | - | - | (53,791 | ) | (53,791 | ) |
At 30 November 2022 | 775,842 | 2,318,418 | 162,383 | 3,256,643 |
NET BOOK VALUE |
At 30 November 2022 | 299,614 | 456,994 | 448,365 | 1,204,973 |
At 30 November 2021 | 369,110 | 474,040 | 429,644 | 1,272,794 |
MAG GROUP LIMITED (REGISTERED NUMBER: 04577893) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2022 |
12. | TANGIBLE FIXED ASSETS - continued |
Company |
Plant, |
Short | equipment |
leasehold | and | Motor |
improvements | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 December 2021 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 November 2022 |
DEPRECIATION |
At 1 December 2021 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 November 2022 |
NET BOOK VALUE |
At 30 November 2022 |
At 30 November 2021 |
13. | FIXED ASSET INVESTMENTS |
Investment in subsidiaries comprises: |
Principal activity |
Althon Limited Sale of construction goods |
Stevensons of Norwich Limited Manufacture and sale of plaster and |
Jesmonite mouldings |
Stevensons (1982) Limited Support services and asset holding |
company |
Healey & Lord Ltd Sale of bathroom fittings, construction |
and safety goods |
MAG KB Limited Sale of bathroom fittings and group |
support services |
Fermor Limited Group support services |
All subsidiary companies are wholly owned and registered at the address given on page 1. |
MAG GROUP LIMITED (REGISTERED NUMBER: 04577893) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2022 |
14. | STOCK |
Group |
2022 | 2021 |
£ | £ |
Goods purchased for resale | 1,192,264 | 918,884 |
Raw materials | 79,452 | 82,169 |
Finished goods | 60,963 | 70,376 |
1,332,679 | 1,071,429 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Trade debtors | 4,317,734 | 4,593,028 |
Amounts owed by group undertakings | - | - |
Amounts recoverable on contracts | 18,027 | 19,851 |
Other debtors | 20,986 | 18,338 |
Prepayments and accrued income | 130,702 | 142,417 |
4,487,449 | 4,773,634 |
16. | CURRENT ASSET INVESTMENTS |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Unlisted investments | 88,451 | - | 88,451 | - |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Contract payments on account | 256,429 | 147,325 |
Trade creditors | 3,386,103 | 3,331,527 |
Amounts owed to group undertakings | - | - |
Corporation tax | 313,679 | 592,514 |
Social security and other taxes | 647,729 | 593,467 |
Other creditors | 1,000,000 | - |
Accruals and deferred income | 1,843,013 | 1,386,522 |
7,446,953 | 6,051,355 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
MAG GROUP LIMITED (REGISTERED NUMBER: 04577893) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2022 |
Group |
Non-cancellable operating | leases |
2022 | 2021 |
£ | £ |
Within one year | 157,128 | 162,516 |
Between one and five years | 558,555 | 586,070 |
In more than five years | 773,598 | 902,531 |
1,489,281 | 1,651,117 |
Company |
Non-cancellable operating | leases |
2022 | 2021 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
19. | PROVISIONS FOR LIABILITIES |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 117,108 | 101,121 |
Other timing differences | (5,315 | ) | (259 | ) | (4,148 | ) | - |
111,793 | 100,862 | 45,528 | 33,330 |
Group |
Deferred |
tax |
£ |
Balance at 1 December 2021 | 100,862 |
Charge to Statement of Comprehensive Income during year | 10,931 |
Balance at 30 November 2022 | 111,793 |
Company |
Deferred |
tax |
£ |
Balance at 1 December 2021 |
Charge to Income Statement during year |
Balance at 30 November 2022 |
MAG GROUP LIMITED (REGISTERED NUMBER: 04577893) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2022 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | 1 | 3,000 | 3,000 |
21. | RESERVES |
Group |
Capital |
Retained | redemption | Merger | Other |
earnings | reserve | reserve | reserves | Totals |
£ | £ | £ | £ | £ |
At 1 December 2021 | 8,329,877 | 2,000 | 1,871,000 | 20,000 | 10,222,877 |
Profit for the year | 3,137,928 | - | - | - | 3,137,928 |
Dividends | (1,000,000 | ) | - | - | - | (1,000,000 | ) |
At 30 November 2022 | 10,467,805 | 2,000 | 1,871,000 | 20,000 | 12,360,805 |
Company |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 December 2021 | 4,135,688 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 30 November 2022 | 4,765,409 |
The merger reserve in the group balance sheet represents the difference between the nominal value and the fair value of the shares issued as consideration for the acquisition of MAG KB Limited. |
22. | PENSION COMMITMENTS |
The group operates defined contribution pension schemes for the directors and staff. The schemes' funds are administered by trustees and are independent of the company's finances. The group's contributions as employers are disclosed in note 4 as "Other pension costs". |
23. | CONTINGENT LIABILITIES |
The company is party to an unlimited composite cross guarantee to its bankers securing the borrowings of subsidiary companies. There were no such borrowings at 30 November 2022 - 2021: none. |
Overall the group's net cash at bank amounted to £12,806,960 - 2021: £9,243,685. |
The company is contingently liable under a group registration scheme for VAT liabilities of subsidiary companies. At 30 November 2022 such liabilities amounted to £425,236 - 2021: £498,231. |
MAG GROUP LIMITED (REGISTERED NUMBER: 04577893) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2022 |
24. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', from disclosing related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
The company paid rent to a company pension scheme for the year amounting to £128,933 - 2021: £128,933. |
25. | CONTROLLING PARTY |
The company is controlled by Mr G C S Gates. |
26. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
£ | £ |
Profit before taxation | 3,886,669 | 3,165,394 |
Depreciation charges | 371,896 | 378,075 |
Profit on disposal of fixed assets | (22,077 | ) | (19,388 | ) |
Loss on revaluation of fixed assets | 11,592 | - |
Finance costs | 3,373 | - |
Finance income | (30,515 | ) | (284 | ) |
4,220,938 | 3,523,797 |
Increase in stock | (261,250 | ) | (15,095 | ) |
Decrease/(increase) in trade and other debtors | 286,185 | (535,667 | ) |
Increase in trade and other creditors | 674,433 | 1,059,698 |
Cash generated from operations | 4,920,306 | 4,032,733 |
27. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 November 2022 |
30.11.22 | 1.12.21 |
£ | £ |
Cash and cash equivalents | 12,808,999 | 9,245,725 |
Year ended 30 November 2021 |
30.11.21 | 1.12.20 |
£ | £ |
Cash and cash equivalents | 9,245,725 | 6,134,175 |
MAG GROUP LIMITED (REGISTERED NUMBER: 04577893) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2022 |
28. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.12.21 | Cash flow | At 30.11.22 |
£ | £ | £ |
Net cash |
Cash at bank | 9,245,725 | 3,563,274 | 12,808,999 |
9,245,725 | 3,563,274 | 12,808,999 |
Liquid resources |
Current asset investments | - | 88,451 | 88,451 |
- | 88,451 | 88,451 |
Total | 9,245,725 | 3,651,725 | 12,897,450 |
29. | BANK SECURITY |
Group bank borrowings are secured by a legal mortgage and fixed and floating charges over group assets. There were no group borrowings at 30 November 2022 - 2021: none. |