**Charity Registration No. 1163885**
**Company Registration No. 08045437 (England and Wales)**
## **MAGIC (UK) LIMITED**
## **ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 30 APRIL 2020**
## **MAGIC (UK) LIMITED**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Mrs C Cooper||
|---|---|---|
||Mrs J Daly||
||Miss K Boon|(Appointed 1 November 2020)|
|**Charity number**|1163885||
|**Company number**|08045437||
|**Trading Name**|City of Rochester School||
|**Registered office**|Bradbury House||
||View Road||
||Cliffe Woods||
||Rochester||
||Kent||
||ME3 8UJ||
|**Auditor**|Crossley Financial Accounting|Limited|
||Star House||
||Star Hill||
||Rochester||
||Kent||
## **MAGIC (UK) LIMITED**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 5|
|Independent auditor's report|6 - 8|
|Statement of financial activities|9|
|Statement of financial position|10 - 11|
|Statement of cash flows|12|
|Notes to the financial statements|13 - 22|
## **MAGIC (UK) LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT)** _**FOR THE YEAR ENDED 30 APRIL 2020**_
The trustees present their report and financial statements for the year ended 30 April 2020.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [governing document], the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
## **Objectives and activities**
MAGIC (UK) Ltd is a charity set up to help children, young adults and their families who have an autism spectrum diagnosis or are in the process of having one diagnosed. It aims to deliver services to these groups of the public that will help alleviate the additional problems that children and young adults with autism can have especially with socialising or being in social situations. This directly benefits the children and young adults by providing experience and strategies for preparing them for adult life in the general public.
The organisation is established to:
- Help and support families with children with autistic spectrum disorder within the Medway Towns.
- Provide a centre of information relating to autism and co-existing disorders.
- Establish and maintain a parent based advisory group for sharing information.
- Arrange activities for the purpose of social skills development for children with autistic spectrum disorders offering extra curricular activities otherwise unavailable to them.
- Provide and manage drop in centre within the Medway Towns for use by families and those working with children with autistic spectrum disorders.
- Create and make available a directory of local agencies offering services for families with children with autistic spectrum disorder’s and professionals working with such children.
The trustees confirm that they have complied with the duties in Section 17(5) of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit.
We have referred to the guidance in the Charity Commissions general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set.
## **Significant Activities**
The organisation operates the following activities for it beneficiaries:
## **MAGIC Activity Days**
Magic Activity Days were designed to improve outcomes and progress for all children with autism offering high quality, fun activities in a safe and supported environment, whilst encouraging the involvement of parents and carers. With a change in the amount and way funding was provided these have not been run during this accounting period. Different ways of supporting young people during the school holidays and periods of school closures particularly with Covid have been investigated and implemented where possible.
## **MAGIC Coffee Morning**
A gathering for parents to meet informally to socialise and to give and receive support to and from other members.
The coffee mornings on occasion are a forum for guest speakers, training sessions and Q&A sessions to provide parents and carers with more structured support.
Based on understanding of guidance from ofsted we are unable to host these drop in meetings at the Bradbury House site. Alternative venues were being looked into until the outbreak of covid.
- 1 -
## **MAGIC (UK) LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 30 APRIL 2020**_
## **MAGIC Youth Club**
We run two weekly sessions one for under 13s and one for over 13s. Again based on the understanding of guidance from ofsted we are unable to host these at the Bradbury house site. Alternatives to the youth club were being looked into until the outbreak of covid.
## **Monkey Bizz MAGIC**
An informal social for parents and children to share experiences and information. The soft play centre has unfortunately closed due to lockdowns and covid related issues. We will look into re-launching once safe to do so in the future.
## **City of Rochester School (formerly Magic ARC)**
City of Rochester School provides education for 5-18 year olds with an autism spectrum condition.
## **Volunteers**
During the year 14 volunteers have provided their services to the charity which equated to 490 hours of donated time.
## **Achievements and performance**
The charity’s major objectives, which are described above, have continued throughout the period of this report.
The global Covid pandemic has had significant impact upon some of our services as noted above such as the closure of the soft play centre meaning that our popular Monkey Bizz sessions could not be provided. In terms of the charity as a whole however, the pandemic has not had any significant financial impact. City of Rochester School has remained open throughout as it is designated a special school so was and is not subject to the school closures .
With City of Rochester School remaining open throughout the pandemic we have been able to continue to provide services to the children and young adults of Kent and Medway. They have continued to benefit from the charities work during this hard time not only within the school, but for those who have been unable to attend, the charity has continued to provide education, therapies and support through telephony, use of information technology such as video calls and ensuring work has been able to be sent home to families. We have ensured the safety of the beneficiaries thoughout by continuing home visits (within social distancing guidelines) and continuing to support family needs including by delivering food parcels for those worse affected by the pandemic.
## **Key Performance Indicators**
Tuition income as a percentage of total income - £1,139,591, 99% of total income, up 9% from last year.
Wages are £760,915, which is 78.2% of total expenditure, a increase of 8.6% from last year. Wages as a percentage of total income are 66.7% in 2020, 52.9% in 2019, 69.8% in 2018 and 78.7% in 2017.
Donations of £6,439 in 2020, are down 59.9% from last year, and are less than 1% of total income in 2020.
- 2 -
## **MAGIC (UK) LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 30 APRIL 2020**_
## **Financial review**
The charity has continued to grow over the period with the number of referrals to City of Rochester School increasing. As more students have been brought on board, more staff have been required to provide the charitable benefits and aims of the charity and space within the charity’s building has been developed and changed to maximise efficiency within the charity. There has been significant investment in updating the building to help deliver its aims and benefits to the children and young adults the charity supports.
Funding during the period has predominantly been delivered via Medway and Kent County Council. Both of these provide funding to enable the charity to provide education and support to the children, young adults and their families with an aim to help them as they grow into adult members of the public.
At the start of the period the children and young people supported were predominantly from Medway Local Authority with few from Kent, however, over the period more have been referred and are now being supported from the Kent area. This has reduced the financial risk to the charity by spreading the sources of income and creating a more balanced financial base. This process is ongoing through the subsequent period.
Unlike many other charities and businesses, the Covid pandemic has not posed a significant financial risk to our charity. The Department for Education, very early in the pandemic, confirmed that all funding for charities running independent schools would remain in place for the duration of the pandemic. As our funding from the local authorities which forms the majority of the charity’s income falls under this, it was assessed that and continues to be assessed that the financial risks to charitable income were minimal.
## **Reserves Policy**
The Board of Trustees recognise the need for the organisation to keep in reserve a level of funds that will enable it to continue supporting its beneficiaries for the foreseeable future.
The Board of Trustees also recognise that the funds of the organisation where possible should be reinvested into the activities that it provides for its beneficiaries.
With this in mind the trustees have agreed that the level of reserves held should be sufficient to support one terms activities and are working towards this.
There were cash and cash equivalents at end of year of £191,103 compared to £120,097 in 2019 and £59,419 in 2018, demonstrating an increasing trend towards this goal.
## **Future Plans**
Continued growth towards filling the 60 available school places with 37 pupils on roll as at the time of writing. Investment and modernisation of the building to facilitate this growth is ongoing.
- 3 -
## **MAGIC (UK) LIMITED**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 30 APRIL 2020**_
## **Structure, governance and management**
## **Governing Document**
The charity is controlled by its governing document, a deed of trust and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
## **Charity Constitution**
Magic Ltd is a Company Limited by Guarantee governed by its Memorandum and Articles of Association dated 25 April 2012. It is registered as a charity with the Charity Commission.
## **Trustees during the year**
Mr C Pocock (Resigned 1 January 2021) Mrs C Cooper Mrs J Daly Miss K Boon (Appointed 1 November 2020)
## **Recruitment and Appointment of New Trustees**
Once a new trustee has been recruited in lies with the processes laid out in the charity’s governing documents, they are given access to a private trustees only shared cloud drive. On this shared pace are a number of the latest documents required to provide a basic induction for all new trustees and for reference for all trustees on an ongoing basis. Shared documents include:
- Articles of association
- Certificate of incorporation
- Charities commission certificate
- Policy documents
- Organisational structure diagram
- Most recent annual report
- Most recent annual accounts
- Quarterly management accounts
- Minutes of previous trustees meetings
- Being a trustee CC3 “the Essential Trustee: what you need to know” (charity commission) www.charitycommsion.gov.uk/publications/cc3.aspx
In addition to this access, all new trustees are invited to visit the charity’s main office to meet the senior management team, staff and where appropriate service uses to better understand the charity and its people.
## **Organisational Structure**
The organisation and its property is administered and managed in accordance with the constitution by the trustees.
The Board of Trustees consists of not less than 2 members and not more than 6 members.
The Board of Trustees has delegated the responsibility for the day to day operation of the organisation to the Headteacher of The City of Rochester School, Alicja Emmett.
- 4 -
## **MAGIC (UK) LIMITED**
**TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)**
## _**FOR THE YEAR ENDED 30 APRIL 2020**_
## **Risk Management**
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. This is reviewed regularly by trustees at their meetings.
## **Key Management Personnel Remuneration**
Trustees now review and consider the remuneration of key management personnel annually.
## **Statement of trustees' responsibilities**
The trustees, who are also the directors of Magic (UK) Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Auditor**
Crossley Financial Accounting Limited were appointed as auditor to the company and a resolution proposing that they be re-appointed will be put at a General Meeting.
The trustees' r eport, including the strategic report, was approved by the Board of Trustees.
..............................
**Mrs C Cooper** Trustee Dated: 02/03/2021
- 5 -
## **MAGIC (UK) LIMITED**
## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF MAGIC (UK) LIMITED**
## **Opinion**
We have audited the financial statements of Magic (UK) Limited (the ‘charity’) for the year ended 30 April 2020 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and the 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 charitable company's affairs as at 30 April 2020 and of its incoming resources and application of resources, 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 the provisions available for small entities, in the circumstances set out in note [X] to the financial statements, 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 trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’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 trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 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.
- 6 -
## **MAGIC (UK) LIMITED**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF MAGIC (UK) LIMITED**
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees' r eport; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the charity for the purpose of company law, 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 trustees determine 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 trustees are responsible for assessing the charity’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 trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
- 7 -
## **MAGIC (UK) LIMITED**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF MAGIC (UK) LIMITED**
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
**S Meah FCCA (Senior Statutory Auditor) for and on behalf of Crossley Financial Accounting Limited** ......................... 4th March 2021 **Chartered Accountants Statutory Auditor** Star House Star Hill Rochester Kent
Crossley Financial Accounting Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.
- 8 -
## **MAGIC (UK) LIMITED**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 30 APRIL 2020**_
|**Unrestricted**
**funds**
**2020**
**Notes**
**£**
**Income and endowments from:**
Donations and legacies
**3**
6,464
Income from charitable activities
**4**
1,139,591
Other trading activities
**5**
360
Other income
**6**
-
**Total income**
1,146,415
**Expenditure on:**
Raising funds
Charitable activities expenditure
**7**
1,016,283
Other
-
**Total resources expended**
1,016,283
**Net income for the year/**
**Net movement in funds**
130,132
Fund balances at 1 May 2019
206,326
**Fund balances at 30 April 2020**
336,458|Total
2019
**£**
16,114
664,337
14,476
3,657
698,584
602,492
4,797
607,289
91,295
115,031
206,326|
|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 9 -
## **MAGIC (UK) LIMITED**
## **STATEMENT OF FINANCIAL POSITION**
## _**AS AT 30 APRIL 2020**_
|**2020**
**Notes**
**£**
**£**
**Fixed assets**
Tangible assets
**12**
577,664
**Current assets**
Stocks
**13**
100
Debtors
**14**
329,100
Cash at bank and in hand
191,103
520,303
**Creditors: amounts falling due within**
**one year**
**16**
(455,818)
Net current assets
64,485
**Total assets less current liabilities**
642,149
**Creditors: amounts falling due after**
**more than one year**
**17**
(305,691)
**Net assets**
336,458|**2019**
**£**
**£**
453,721
300
39,559
120,097
159,956
(93,920)
66,036
519,757
(313,431)
206,326|
|---|---|
- 10 -
## **MAGIC (UK) LIMITED**
## **STATEMENT OF FINANCIAL POSITION (CONTINUED)** _**AS AT 30 APRIL 2020**_
|**2020**
**Notes**
**£**
**Income funds**
Unrestricted funds - general|**2019**
**£**
**£**
336,458
336,458|**£**
206,326
206,326|
|---|---|---|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 April 2020, although an audit has been carried out under section 144 of the Charities Act 2011.
The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the 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 members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 02/03/2021
.............................. Mrs C Cooper **Trustee**
## **Company Registration No. 08045437**
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## **MAGIC (UK) LIMITED**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 30 APRIL 2020**_
|**2020**
**Notes**
**£**
**£**
**Cash flows from operating activities**
Cash generated from operations
**20**
221,326
**Investing activities**
Purchase of tangible fixed assets
(142,918)
Proceeds on disposal of tangible fixed
assets
-
**Net cash used in investing activities**
(142,918)
**Financing activities**
Repayment of bank loans
(7,402)
**Net cash used in financing activities**
(7,402)
**Net increase in cash and cash equivalents**
71,006
Cash and cash equivalents at beginning of year
120,097
**Cash and cash equivalents at end of year**
191,103|**2019**
**£**
(2,376)
527
(27,895)|**£**
90,422
(1,849)
(27,895)
60,678
59,419
120,097|
|---|---|---|
- 12 -
## **MAGIC (UK) LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 30 APRIL 2020**_
## **1 Accounting policies**
## **Charity information**
Magic (UK) Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Bradbury House, View Road, Cliffe Woods, Rochester, Kent, ME3 8UJ.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
## **1.4 Incoming resources**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
- 13 -
## **MAGIC (UK) LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 APRIL 2020**_
## **1 Accounting policies**
**(Continued)**
## **1.5 Resources expended**
Expenditure is accounted for on an accruals basis and has been classified under the heading that aggregates all costs related to the category. Where costs cannot be attributed to a particular heading, they have been allocated to activities on a basis consistent with the use of resources.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
|Freehold land and buildings|2% on cost|
|---|---|
|Leasehold improvements|Straight line over 20 years|
|Plant and equipment|Straight line over 5 years|
|Fixtures and fittings|Straight line over 5 years|
|Computers|Straight line over 3 years|
|Motor vehicles|Straight line over 5 years|
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
## **1.7 Stocks**
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell . Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
## **1.8 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.9 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.
- 14 -
## **MAGIC (UK) LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 APRIL 2020**_
## **1 Accounting policies**
## **(Continued)**
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans 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 p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## **1.10 Company Status**
In the event of winding up of the charity each member of the Charity undertakes to contribute such sum as may be required, not exceeding £1 each.
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Donations and legacies**
|**Unrestricted**
**funds**
**general**
**2020**
**£**
Donations and gifts
6,439
Membership fees
25
6,464|Total
2019
£
14,592
1,522
16,114|
|---|---|
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## **MAGIC (UK) LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 APRIL 2020**_
|**4**
**Income from charitable activities**
Tuition
Performance related grants
**Performance related grants**
Aiming High
**5**
**Other trading activities**
Fundraising events
Cafe
Trading activity income: other
Other trading activities
**6**
**Other income**
Other income|**General**
General
**2020**
2019
**£**
£
1,139,591
625,720
-
38,617
1,139,591
664,337
-
38,617
-
38,617
**Unrestricted**Unrestricted
**funds**
funds
**general**
general
**2020**
2019
**£**
£
14
310
36
1,081
310
13,085
360
14,476
**Unrestricted**
Total
**funds**
**general**
**2020**
2019
**£**
£
-
3,657|
|---|---|
- 16 -
## **MAGIC (UK) LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 APRIL 2020**_
## **7 Charitable activities expenditure**
|**Staff costs**
Depreciation and impairment
Premises Costs
Office Costs
Activity Costs
Travel and Fuel
Computer and Software
Volunteer Expenses
Training
Professional Fees
School Supplies
Magic Bean Cafe
Bank Charges and Loan Interest
Fund Raising Costs
Share of support costs (see note 8)
Share of governance costs (see note 8)
**Analysis by fund**
Unrestricted funds - general
**For the year ended 30 April 2019**
Unrestricted funds - general|**General**
**2020**
**£**
760,915
18,975
43,653
8,564
37,720
6,603
30,826
-
8,502
23,589
21,223
1,094
11,362
216
973,242
36,441
6,600
1,016,283
1,016,283
602,492
602,492|**Total**
**2020**
**£**
760,915
18,975
43,653
8,564
37,720
6,603
30,826
-
8,502
23,589
21,223
1,094
11,362
216
973,242
36,441
6,600
1,016,283
1,016,283|**General**
**2019**
**£**
390,719
13,398
53,062
5,499
9,416
6,346
6,988
469
11,216
36,486
7,733
2,366
13,769
162|
**Total**
**2019**
**£**
390,719
13,398
53,062
5,499
9,416
6,346
6,988
469
11,216
36,486
7,733
2,366
13,769
162
557,629
40,663
4,200
602,492
602,492
602,492
602,492|
|---|---|---|---|---|
||||557,629
40,663
4,200||
||||602,492||
||||602,492||
||||||
- 17 -
## **MAGIC (UK) LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 APRIL 2020**_
## **8 Support costs**
|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Sundries
1,811
-
Marketing
2,292
-
Recruitment costs
27,507
-
Accountancy fees
4,831
-
Audit fees
-
6,600
Accountancy and
indepedent examination
costs
-
-
36,441
6,600
Analysed between
Charitable activities
36,441
6,600|**2020**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
**£**
1,811
5,592
-
2,292
479
-
27,507
21,814
-
4,831
12,778
-
6,600
-
-
-
-
4,200
43,041
40,663
4,200
43,041
40,663
4,200|**2019**
**£**
5,592
479
21,814
12,778
-
4,200
44,863
44,863|
|---|---|---|
## **9 Trustees**
One trustee claimed £21 9 in mileage expenses during the period at the standard 45p per mile for additional travel incurred performing home visits for potential new students.
- 18 -
## **MAGIC (UK) LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 APRIL 2020**_
## **10 Employees**
## **Number of employees**
The average monthly number of employees during the year was:
|Monthly staff
Weekly staff
**Employment costs**
Wages and salaries
Social security costs
The number of employees whose annual remuneration was £60,000 or
more were:
Head Teacher|**2020**
**Number**
19
-
19
**2020**
**£**
532,012
64,370
596,382
**2020**
**Number**
1|**2019**
**Number**
9
6
15
**2019**
**£**
356,168
34,551
390,719
**2019**
**Number**
-|
|---|---|---|
## **11 Key management personnel**
The key management personnel of the charity comprise the Head Teacher - appointed 1 March 2019.
The total amount of remuneration ( including employer pension contributions and employee benefits ) paid to key management personnel for their services to the charity for the year was £ 74, 667 (2019 - £11,500).
- 19 -
## **MAGIC (UK) LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 30 APRIL 2020**_
## **12 Tangible fixed assets**
|**Freehold land**
**and buildings**
**Leasehold**
**improvements**
**Plant and**
**equipment**
**Fixtures and**
**fittings**
**Computers Motor vehicles**
**£**
**£**
**£**
**£**
**£**
**£**
**Cost**
At 1 May 2019
475,000
2,449
2,424
8,550
6,619
1,050
Additions
-
129,354
102
3,488
9,974
-
Disposals
-
-
-
-
(340)
-
At 30 April 2020
475,000
131,803
2,526
12,038
16,253
1,050
**Depreciation and impairment**
At 1 May 2019
28,500
429
1,588
5,860
4,943
1,050
Depreciation charged in the year
9,500
4,377
504
2,092
2,503
-
Eliminated in respect of disposals
-
-
-
-
(340)
-
At 30 April 2020
38,000
4,806
2,092
7,952
7,106
1,050
**Carrying amount**
At 30 April 2020
437,000
126,997
434
4,086
9,147
-
At 30 April 2019
446,500
2,020
835
2,689
1,677
-|**Total**
**£**
496,092
142,918
(340)
638,670
42,370
18,976
(340)
61,006
577,664
453,721|
|---|---|
- 20 -
## **MAGIC (UK) LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 APRIL 2020**_
|**13**
**Stocks**
Valuation
**14**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income
**15**
**Loans and overdrafts**
Bank loans
Payable within one year
Payable after one year
**16**
**Creditors: amounts falling due within one year**
**Notes**
Bank loans
**15**
Other taxation and social security
Trade creditors
Accruals and deferred income
**17**
**Creditors: amounts falling due after more than one year**
**Notes**
Bank loans
**15**|**2020**
**£**
100
**2020**
**£**
313,552
7,956
7,592
329,100
**2020**
**£**
314,119
8,428
305,691
**2020**
**£**
8,428
21,355
22,692
403,343
455,818
**2020**
**£**
305,691|**2019**
**£**
300
**2019**
**£**
30,444
5,792
3,323
39,559
**2019**
**£**
321,521
8,090
313,431
**2019**
**£**
8,090
5,821
8,458
71,551
93,920
**2019**
**£**
313,431|
|---|---|---|
- 21 -
## **MAGIC (UK) LIMITED**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 APRIL 2020**_
## **18 Related party transactions**
CooperDaly Solutions & Support LLP is a business which Claire Cooper and Jennifer Daly, two of the trustees of Magic (UK) Limited own.
During the year ended 30 April 2020 no sales were raised fro m Magic (UK) Limited to Cooper Daly Solutions & Support LLP. Sales to the sum of £5 , 04 8 were raised from CooperDaly Solutions and Support LLP to Magic (UK) Ltd for training and consulting services.
At the year-end no amounts were due to or f ro m the related party .
## **19 Secured Debt**
HSBC bank registered a fixed and floating charge over the charity's assets dated 22 July 2014.
HSBC bank registered a legal mortgage over the freehold premises of the charity dated 14 January 2016.
|**20**|**Cash generated from operations**||**2020**|**2019**|
|---|---|---|---|---|
||||**£**|**£**|
||Surplus for the year||130,132|91,295|
||Adjustments for:||||
||(Gain)/loss on disposal of tangible fixed assets||-|4,797|
||Depreciation and impairment of tangible fixed assets||18,975|13,398|
||Movements in working capital:||||
||Decrease in stocks||200|-|
||(Increase) in debtors||(289,541)|(12,754)|
||Increase/(decrease) in creditors||361,560|(6,314)|
||**Cash generated from operations**||221,326|90,422|
|**21**|**Analysis of changes in net (debt)/funds**||||
|||**At 1 May 2019**|**Cash flows At**|**30 April 2020**|
|||**£**|**£**|**£**|
||Cash at bank and in hand|120,097|71,006|191,103|
||Loans falling due within one year|(8,090)|(338)|(8,428)|
||Loans falling due after more than one year|(313,431)|7,740|(305,691)|
|||(201,424)|78,408|(123,016)|
- 22 -