MAG Group Limited - Limited company accounts 17.3

REGISTERED NUMBER: 04577893 (England and Wales)

for

Page

Company Information  

1

Group Strategic Report  

2

Report of the Directors  

3

Report of the Independent Auditors  

4

Consolidated Statement of Income and Retained Earnings

6

Consolidated Balance Sheet  

7

Company Balance Sheet  

8

Consolidated Cash Flow Statement  

9

Notes to the Consolidated Financial Statements  

10

DIRECTORS:

G C S Gates

Mrs J M Gates

G S Cox

T P J Gates

SECRETARY:

D M Fiddy

REGISTERED OFFICE:

Vulcan Road South

Norwich

Norfolk

NR6 6AF

REGISTERED NUMBER:

04577893 (England and Wales)

AUDITORS:

Rawse, Varley & Co

Statutory Auditor

Lloyds Bank Chambers

Hustlergate

Bradford

BD1 1UQ

The directors present their strategic report of the company and the group for the year ended 30 November 2017.

GROUP ACTIVITIES

The group's principal activities comprise the supply of kitchen and bathroom fittings, the manufacture, installation and

sale of plaster and Jesmonite mouldings and the sale and hire of construction and safety goods and equipment.

BUSINESS REVIEW

The group profit after taxation for the year amounted to £937,784 (2016: £433,183).

The key financial performance indicators were as follows:

               2017

                  2016

                £

                  £

Group turnover

15,748,426

13,577,490

Gross profit margin

35.2%

34.5%

Operating profit

1,174,747

558,669

Net cash flow from operations

1,299,760

1,316,826

Group turnover advanced by 16% following a similar increase last year with all businesses contributing to the growth.

Gross profit margins continued to improve. Operating profit more than doubled that of the previous year, overheads

having been kept under firm control. The group continued to generate significant cash flows from operations, which is

reflected in a further increase in the group's cash at  bank.

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:

Director

13 April 2018

The directors present their report and the financial statements for the year ended 30 November 2017.

DIVIDENDS

It is not proposed to distribute dividends in respect of the year ended 30 November 2017.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 December 2016 to the date of this

report.

G C S Gates

Mrs J M Gates

G S Cox

T P J Gates

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:

D M Fiddy - Secretary

13 April 2018

Opinion

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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-

the directors' use of the going concern basis of accounting in the preparation of the financial statements is not

appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast

significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of

at least twelve months from the date when the financial statements are authorised for issue.

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 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, 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.

Opinion 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.

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.

Our 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.

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.

Philip Varley (Senior Statutory Auditor)

for and on behalf of Rawse, Varley & Co

Statutory Auditor

Lloyds Bank Chambers

Hustlergate

Bradford

BD1 1UQ

13 April 2018

TURNOVER

3

15,748,426

13,577,490

Cost of sales

10,205,794

8,889,359

GROSS PROFIT

5,542,632

4,688,131

Distribution costs

597,282

641,371

Administrative expenses

3,770,603

3,488,091

4,367,885

4,129,462

OPERATING PROFIT

6

1,174,747

558,669

Interest receivable and similar income

531

881

PROFIT BEFORE TAXATION

1,175,278

559,550

Tax on profit

7

237,494

126,367

PROFIT FOR THE FINANCIAL YEAR

937,784

433,183

Retained earnings at beginning of year

643,138

209,955

RETAINED EARNINGS FOR THE

GROUP AT END OF YEAR

1,580,922

643,138

Profit attributable to:

Owners of the parent

937,784

433,183

FIXED ASSETS

Intangible assets

9

72,588

87,107

Tangible assets

10

1,360,573

1,353,535

1,433,161

1,440,642

CURRENT ASSETS

Stocks

12

424,765

421,184

Debtors

13

2,724,337

2,068,791

Cash at bank and in hand

2,322,917

1,401,618

5,472,019

3,891,593

CREDITORS

Amounts falling due within one year

14

3,342,036

2,720,246

NET CURRENT ASSETS

2,129,983

1,171,347

TOTAL ASSETS LESS CURRENT

LIABILITIES

3,563,144

2,611,989

PROVISIONS FOR LIABILITIES

16

91,222

77,851

NET ASSETS

3,471,922

2,534,138

CAPITAL AND RESERVES

Called up share capital

17

3,000

3,000

Capital redemption reserve

18

2,000

2,000

Merger reserve

18

1,871,000

1,871,000

Other reserves

18

15,000

15,000

Retained earnings

18

1,580,922

643,138

SHAREHOLDERS' FUNDS

3,471,922

2,534,138

The financial statements were approved by the Board of Directors on 13 April 2018 and were signed on its behalf by:

G C S Gates - Director

FIXED ASSETS

Tangible assets

10

897,358

954,754

Investments

11

655,295

650,395

1,552,653

1,605,149

CURRENT ASSETS

Debtors

13

131,919

54,856

Cash at bank

274,178

89,256

406,097

144,112

CREDITORS

Amounts falling due within one year

14

655,587

668,406

NET CURRENT LIABILITIES

(249,490

)

(524,294

)

TOTAL ASSETS LESS CURRENT

LIABILITIES

1,303,163

1,080,855

PROVISIONS FOR LIABILITIES

16

51,297

55,503

NET ASSETS

1,251,866

1,025,352

CAPITAL AND RESERVES

Called up share capital

17

3,000

3,000

Capital redemption reserve

18

2,000

2,000

Retained earnings

18

1,246,866

1,020,352

SHAREHOLDERS' FUNDS

1,251,866

1,025,352

Company's profit for the financial year

226,514

13,095

The financial statements were approved by the Board of Directors on 13 April 2018 and were signed on its behalf by:

G C S Gates - Director

Cash flows from operating activities

Cash generated from operations

23

1,299,760

1,316,826

Tax paid

(78,135

)

(66,042

)

Net cash from operating activities

1,221,625

1,250,784

Cash flows from investing activities

Purchase of tangible fixed assets

(309,469

)

(422,753

)

Sale of tangible fixed assets

8,612

-

Acquisition of subsidiary

-

(100

)

Cash acquired with subsidiary

-

100

Interest received

531

881

Net cash from investing activities

(300,326

)

(421,872

)

Increase in cash and cash equivalents

921,299

828,912

Cash and cash equivalents at beginning of

year

24

1,401,618

572,706

Cash and cash equivalents at end of year

24

2,322,917

1,401,618

1.

STATUTORY INFORMATION

MAG Group Limited 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 General Information page.

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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

Intangible assets

Tangible fixed assets

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.

Taxation

Deferred taxation

Pension contributions

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.