Magic International Limited Filleted accounts for Companies House (small and micro)

MAGIC INTERNATIONAL LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 03688932

Magic International Limited

Filleted Unaudited Financial Statements

31 March 2018

Magic International Limited

Statement of Financial Position

31 March 2018

	2018		2017
Note	£	£	£

Fixed assets

Intangible assets	6	1	1
Tangible assets	7	2	770
		----	----
		3	771

Current assets

Stocks		8,500	8,000
Debtors	8	23,619	20,998
Cash at bank and in hand		293,035	176,509
		---------	---------
		325,154	205,507

Creditors: amounts falling due within one year	9	186,058		148,918
		---------		---------
Net current assets			139,096	56,589
			---------	--------
Total assets less current liabilities			139,099	57,360

Provisions

Taxation including deferred tax	( 66,527)	( 89,331)
	---------	---------
Net assets	205,626	146,691
	---------	---------

Capital and reserves

Called up share capital		151	151
Share premium account	10	–	659,613
Profit and loss account	10	205,475	( 513,073)
		---------	---------
Shareholders funds		205,626	146,691
		---------	---------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.

For the year ending 31 March 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

Magic International Limited

Statement of Financial Position (continued)

31 March 2018

These financial statements were approved by the board of directors and authorised for issue on 7 November 2018 , and are signed on behalf of the board by:

P E Lang

Director

Company registration number: 03688932

Magic International Limited

Notes to the Financial Statements

Year ended 31 March 2018

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is c/o Messrs Elliot Woolfe & Rose, Equity House, 128-136 High Street, Edgware, Middx, HA8 7TT.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The accounts have been prepared on the going concern basis which assumes financial support from its directors will be continued for at least 12 months from the date of approval of these financial statements.

Revenue recognition

Turnover represents amount receivable for goods and services net of VAT and trade discounts.

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.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Patents	-	33% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

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:

Computer & Ancilliary Equipment	-	20% straight line
Fixtures, Fittings & Equipment	-	20% straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

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.

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 statement of financial position 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.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 1 (2017: 1 ).

5. Tax on profit

Major components of tax expense/(income)

	2018	2017
	£	£

Deferred tax:

Origination and reversal of timing differences	22,804	( 89,331)
	--------	--------
Tax on profit	22,804	( 89,331)
	--------	--------

The company has tax losses of £340,148 (2017 - £458,740) available to carry forward against future profits. There is no liability to Corporation Tax based on these financial statements.

Reconciliation of tax expense/(income)

The tax assessed on the profit on ordinary activities for the year is higher than (2017: lower than) the standard rate of corporation tax in the UK of 19 % (2017: 20 %).

	2018	2017
	£	£
Profit on ordinary activities before taxation	119,739	177,797
	---------	---------
Profit on ordinary activities by rate of tax	22,750	35,959
Effect of expenses not deductible for tax purposes	53	36
Effect of capital allowances and depreciation	–	( 2,502)
Utilisation of tax losses	–	( 35,664)
Unused tax losses	–	( 87,161)
Rounding on tax charge	1	1
	---------	---------
Tax on profit	22,804	( 89,331)
	---------	---------

6. Intangible assets

	Goodwill
	£
Cost
At 1 April 2017 and 31 March 2018	193,661
	---------
Amortisation
At 1 April 2017 and 31 March 2018	193,660
	---------
Carrying amount
At 31 March 2018	1
	---------
At 31 March 2017	1
	---------

7. Tangible assets

	Plant and machinery	Fixtures and fittings	Total
	£	£	£
Cost
At 1 April 2017 and 31 March 2018	42,291	1,951	44,242
	--------	-------	--------
Depreciation
At 1 April 2017	41,522	1,950	43,472
Charge for the year	768	–	768
	--------	-------	--------
At 31 March 2018	42,290	1,950	44,240
	--------	-------	--------
Carrying amount
At 31 March 2018	1	1	2
	--------	-------	--------
At 31 March 2017	769	1	770
	--------	-------	--------

8. Debtors

	2018	2017
	£	£
Other debtors	23,619	20,998
	--------	--------

9. Creditors: amounts falling due within one year

	2018	2017
	£	£
Other creditors	186,058	148,918
	---------	---------

10. Reserves

Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. Under the provisions of The Companies Act 2006, on 10th January 2018 the Share Premium Account was cancelled and the balance of £659,613 was transferred to Profit and Loss Account.

11. Contingencies

The directors have deferred taking remuneration due to them for the time being. The notional amount deferred at 31 March 2018 including employers national insurance was £2,276,208. (2017: £2,057,712).

12. Ultimate controlling party

The company is under the ultimate control of P E Lang , a director and shareholder of the company.