Magma Partners Limited - Accounts to registrar (filleted) - small 17.3

REGISTERED NUMBER: 08675358 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

FOR

MAGMA PARTNERS LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

R Lodder

D W Nash

M Tuckwell

A B Wilson

V J Craig

D R Buck

J Kicks

L J Turner

P C Orton

REGISTERED OFFICE:

Magma House

16 Davy Court

Castle Mound Way

Rugby

Warwickshire

CV23 OUZ

REGISTERED NUMBER:

08675358 (England and Wales)

FIXED ASSETS

Intangible assets

3

501,600

818,400

Tangible assets

4

93,280

105,747

Investments

5

-

104,400

594,880

1,028,547

CURRENT ASSETS

Debtors

6

1,276,963

1,157,278

Cash at bank and in hand

552,435

598,839

1,829,398

1,756,117

CREDITORS

Amounts falling due within one year

7

1,316,606

944,623

NET CURRENT ASSETS

512,792

811,494

TOTAL ASSETS LESS CURRENT LIABILITIES

1,107,672

1,840,041

CREDITORS

Amounts falling due after more than one year

8

485,587

807,109

NET ASSETS

622,085

1,032,932

CAPITAL AND RESERVES

Called up share capital

105

105

Share premium

10

149,994

149,994

Retained earnings

10

471,986

882,833

SHAREHOLDERS' FUNDS

622,085

1,032,932

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2017 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 of Part 15 of the Companies Act 2006 relating to small companies.

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 on 18 December 2017 and were signed on its behalf by:

M Tuckwell - Director

1.	STATUTORY INFORMATION

Magma Partners Limited is a private company limited by shares, registered in England and Wales, registration

number 08675358. The company's registered office is Magma House, 16 Davy Court, Castle Mound Way,

Rugby, Warwickshire, CV23 0UZ.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The principal accounting policies applied in the preparation of these financial statements are set out below.

These policies have been consistently applied to all years presented, unless otherwise stated. The company has

adopted FRS 102 (September 2015) 1A Small Entities in these financial statements. Details of the transition to

FRS 102 Section 1A Small Entities are disclosed in the notes to the financial statements.

This is the first year in which the financial statements have been prepared under FRS102 1A Small Entities.

The financial statements are presented in £ sterling.

Turnover

Turnover represents amounts chargeable to clients for professional services rendered through the financial year.

Turnover excludes value added tax and includes expenses recoverable from clients.

Turnover is recognised when the right to consideration has been obtained through performance under each

contract. Turnover in respect of contingent conditional fee arrangements is recognised on the occurrence of the

contingent event. Where crystallisation of the contingent event is foreseen at the end of the financial year the

carrying value of work in progress is the lower of cost and net realisable value.

Unbilled income is recognised in debtors as accrued income after provision for non - recoverable amounts.

Fees received on account of work to be completed are recorded within creditors falling due within one year.

Intangible fixed assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost

less any accumulated amortisation and any accumulated impairment losses. Amortisation is charged on a

straight line basis that will write off the cost over its useful economic life.

Purchased goodwill, being the amount paid in connection with the acquisition of a business in 2013 is being

amortised over 5 years.

Tangible fixed assets

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

Computer equipment

-

33% straight line and 20% straight line

Tangible fixed assets are shown at cost less accumulated deprecation.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less provision for impairment.

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial

assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to

related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period

for objective evidence or impairment. If objective evidence of impairment is found, an impairment loss is

recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an

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.

Taxation

The tax expense for the year comprises current and deferred tax.

Tax is recognised in profit or loss except that a change attributable to an item of income and expense recognised

as other comprehensive income or to an item recognised directly in equity respectively.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed at

the Balance Sheet date, except that:

- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered

against the reversal of deferred tax liabilities or other future taxable profits; and

- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have

been met.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively

enacted by the balance sheet date.

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 contributes to a defined contribution pension scheme. Contributions payable to the company's

pension scheme are charged to the profit and loss account in the period to which they relate.

Debtors

Basic financial assets, including trade and other debtors, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost

using the effective interest method, less any impairment.

Cash and cash equivalents

Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and

other short-term highly liquid investments that mature in no more than three months from the date of acquisition

and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors

Basic financial liabilities, including trade and other creditors, loans from third parties parties and loans from

related parties, 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. Such instruments are subsequently carried at amortised cost using the effective interest

method, less any impairment.

3.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2016

and 31 March 2017

1,584,000

AMORTISATION

At 1 April 2016

765,600

Amortisation for year

316,800

At 31 March 2017

1,082,400

NET BOOK VALUE

At 31 March 2017

501,600

At 31 March 2016

818,400

4.	TANGIBLE FIXED ASSETS

Computer

equipment

£

COST

At 1 April 2016

242,231

Additions

38,621

Disposals

(350

)

At 31 March 2017

280,502

DEPRECIATION

At 1 April 2016

136,484

Charge for year

50,981

Eliminated on disposal

(243

)

At 31 March 2017

187,222

NET BOOK VALUE

At 31 March 2017

93,280

At 31 March 2016

105,747

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 April 2016

104,400

Disposals

(104,400

)

At 31 March 2017

-

NET BOOK VALUE

At 31 March 2017

-

At 31 March 2016

104,400

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.17

31.3.16

£

£

Trade debtors

773,897

782,544

Amounts owed by group undertakings

115,944

-

Other debtors

387,122

374,734

1,276,963

1,157,278

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.17

31.3.16

£

£

Trade creditors

220,504

145,329

Amounts owed to group undertakings

77,334

989

Taxation and social security

437,582

302,783

Other creditors

581,186

495,522

1,316,606

944,623

Included within Other creditors is a pension creditor due at year end of £15,596 (2016: £6,140).

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.3.17

31.3.16

£

£

Other creditors

485,587

807,109

9.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

31.3.17

31.3.16

£

£

Between one and five years

63,162

86,716

In more than five years

242,604

285,104

305,766

371,820

10.

RESERVES

Retained

Share

earnings

premium

Totals

£

£

£

At 1 April 2016

882,833

149,994

1,032,827

Profit for the year

747,386

747,386

Dividends

(1,158,233

)

(1,158,233

)

At 31 March 2017

471,986

149,994

621,980

11.	CONTINGENT LIABILITIES

On 30 January 2017, the company provided a guarantee over a bank loan taken out by a director of £50,000.

12.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The balance owed to the company at 31 March 2017 by one of the directors was £68,750 (2016:£100,000). The

maximum outstanding during the year was £100,000. Interest was charged at 3%.

13.	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', not to disclose related party

transactions with wholly owned subsidiaries within the group.

14.	FIRST YEAR ADOPTION

This is the first year that the company has presented its results under FRS 102. The last financial statements

under UK GAAP were for the year ended 31 March 2016. The date of transition to FRS 102 was 1 April 2015.

There were no changes to the profit following the changes in accounting policies for the financial year 31 March

2016 and no changes to the total equity as at 1 April 2015 and 31 March 2016 between UK GAAP as previously

reported and FRS 102.