Level 2

Company Announcements

Half-year Report

Related Companies

By LSE RNS

RNS Number : 9855R
Andrews Sykes Group PLC
27 September 2017
 



 

Andrews Sykes Group plc
Interim Financial Statements 2017

 

 

Summary of results

for the six months ended 30 June 2017

 

 

(Unaudited)

 

6 months ended

 30 June 2017

6 months ended

 30 June 2016

 

£'000

£'000

 

 

 

Revenue from continuing operations

35,334

30,287

EBITDA* from continuing operations

10,892

8,799

Operating profit

8,171

6,395

Inter-company foreign exchange gains and losses

(51)

1,062

Profit for the financial period

6,570

6,195

Basic earnings per share (pence)

15.55p

14.66p

Interim dividends declared per equity share (pence)

11.90p

11.90p

Net funds

17,403

15,392

 

                

                

 

*       Earnings Before Interest, Taxation, Depreciation, profit on the sale of property, plant and equipment, Amortisation and non-recurring items.

 

Chairman's Statement

 

Overview

The group produced a successful result for the first half of 2017, once again the winter months created some good opportunities for our heating and boiler hire products. Overall, the group's revenue for the six months ended 30 June 2017 was £35.3 million, an increase of £5.0 million compared with the same period last year. As a consequence operating profit increased by £1.8 million from £6.4 million in the first half of 2016 to £8.2 million for the six months ended 30 June 2017.

The group continues to be profitable and cash generative. Cash generated from operations was £8.6 million (2016: £7.1 million) and net funds decreased by £0.3 million from £17.7 million as at 31 December 2016 to £17.4 million as at 30 June 2017, this was after paying the 2016 final dividend of 11.9 pence per share, or £5.0 million in total, during the period.

Management continue to safeguard the operational structure of the business. Cash spent on new plant and equipment, primarily hire fleet assets, amounted to £2.6 million and a further £1.2 million from stock was also added to the hire fleet. We have continued our policy of pursuing organic growth within our market sectors and start up costs of the new businesses discussed in previous Strategic Reports continue to be expensed as incurred. Continuing investment in both our existing core businesses and the ongoing development of new operations and income streams will ensure that we remain in a strong position and will safeguard profitability into the future.

Operations review

Our main hire and sales business segment in the UK and Europe continued to expand during first half of 2017. Our pumping activity has stayed in line with expectation and our heating products have increased revenue levels by 12%. Demand for our air conditioning products has increased mainly due to a warmer than expected start to the summer in the month of June.

Our operations across the Benelux region have experienced continued strong growth. Our recently established businesses in France, Switzerland and Luxembourg continue to trade in line with our expectations. In Italy we have had a strong trading result driven by a 50% increase in revenues.

Andrews Air Conditioning & Refrigeration, our UK air conditioning installation business, produced an operating profit in line with previous periods.

Khansaheb Sykes, our long established business based in the UAE, had a reasonable start to the year, maintaining similar revenue levels of 2016. The climate rental division also continues to make a positive contribution. Overall, the operating profit of Khansaheb Sykes was in line with expectation.

Profit for the financial period and Earnings per Share

Profit before tax was £8.1 million (2016: £7.5 million) reflecting both the above £1.8 million increase in operating profit and a significant decrease in net finance income of £1.2 million, compared with the same period in 2016. This decrease was primarily due to a net inter-company foreign exchange gain of £1.1 million reported in 2016 compared with a loss of £0.1 million in 2017.

The total tax charge increased by £0.2 million from £1.3 million for the six months ended 30 June 2016 to £1.5 million for the current six month period. The effective tax rate increased from 17.7% for the six months ended 30 June 2016 to 19.0% in the current period. The rate for the current period is slightly less than the standard effective UK corporation tax rate of 19.25% which is mainly due to the effect of profits being made in lower tax regions overseas partially offset by non-tax deductible expenses. A reconciliation of the theoretical corporation tax charge based on the accounts profit multiplied by the UK annualised corporation tax rate of 19.25% and the actual tax charge is given in note 4 of these interim financial statements.

Profit after tax was £6.6 million (2016: £6.2 million) and consequently the basic earnings per share increased by 0.89 pence, or 6%, from 14.66 pence for the first half of 2016 to 15.55 pence for the period under review. There were no share buy-backs in the period.

Dividends

The final dividend of 11.90 pence per ordinary share for the year ended 31 December 2016 was approved by members at the AGM held on 21 June 2017. Accordingly on 26 June 2017 the company made a total dividend payment of £5,029,000 which was paid to shareholders on the register as at 26 May 2017.

The board continues to adopt the policy of returning value to shareholders whenever possible. The group remains profitable, cash generative and financially strong. Accordingly the board has decided to declare an interim dividend for 2017 of 11.90 pence per share which in total amounts to £5,029,000. This will be paid on 3 November 2017 to shareholders on the register as at 6 October 2017. The shares will go ex-dividend on 5 October 2017.

Bank loan agreement

During the period, and in accordance with the agreed repayment profile, the group repaid the final annual instalment of £1 million that was due for payment on 30 April 2017. The remaining loan balance of £5 million has been refinanced over a five year period.

Outlook

Trading in the third quarter to date has continued to be positive. Europe has experienced strong results through to September as a result of continued high demand for air conditioning products. Once again activity in the Middle East has remained consistent through the summer period.

The board remains cautiously optimistic that the group will have further success in the remainder of the year.   

 

 

JG Murray

Chairman

28 September 2017

 

 

Consolidated income statement

for the 6 months ended 30 June 2017 (unaudited)

 

 

6 months ended

30 June

2017

£'000

 

6 months ended

30 June

2016

£'000

 

12 months

ended

31 December 

2016

£'000

Continuing operations

 

 

 

 

 

 

 

 

 

 

 

Revenue

35,334

 

30,287

 

65,389

Cost of sales

(15,328)

 

(12,692)

 

      (26,677)

 

 

 

 

 

 

Gross profit

20,006

 

17,595

 

38,712

 

 

 

 

 

 

Distribution costs

(5,917)

 

(5,772)

 

(11,512)

Administrative expenses

(5,918)

 

(5,428)

 

(11,384)

 

 

 

 

 

 

Operating profit

8,171

 

6,395

 

15,816

 

 

 

 

 

 

EBITDA*

10,892

 

8,799

 

20,664

Depreciation and impairment losses

(3,013)

 

(2,702)

 

(5,310)

Profit on the sale of plant and equipment

292

 

298

 

462

Operating profit

8,171

 

6,395

 

15,816

 

 

 

 

 

 

 

 

 

 

 

 

Finance income

49

 

145

 

308

Finance costs

(59)

 

(73)

 

(150)

Intercompany foreign exchange gains and losses

(51)

 

1,062

 

1,567

Profit before taxation

8,110

 

7,529

 

17,541

 

 

 

 

 

 

Taxation

(1,540)

 

(1,334)

 

(3,068)

 

 

 

 

 

 

Profit for the financial period

6,570

 

6,195

 

14,473

 

 

 

 

 

 

There were no discontinued operations in either of the above periods

 

 

 

 

 

 

 

 

 

 

Earnings per share from continuing operations

 

 

 

 

 

 

 

 

 

 

Basic and diluted (pence)

15.55p

 

14.66p

 

34.25p

 

 

 

 

 

 

Dividends paid during the period per equity share (pence)

11.90p

 

11.90p

 

23.80p

 

 

 

 

 

 

Proposed dividend per equity share (pence)

11.90p

 

11.90p

 

11.90p

 

 

*  Earnings Before Interest, Taxation, Depreciation, profit on the sale of property, plant and equipment, Amortisation and non-

   recurring items.

 

Consolidated balance sheet

as at 30 June 2017 (unaudited)

 

 

 

 

30 June 2017

 

30 June 2016

 

31 December 2016

 

 

 

         £'000

 

        £'000

 

         £'000

Non-current assets

 

 

 

 

 

 

 

Property, plant and equipment

 

 

20,756

 

18,604

 

20,062

Lease prepayments

 

 

48

 

49

 

49

Trade investments

 

 

164

 

164

 

164

Deferred tax asset

 

 

326

 

482

 

559

Retirement benefit pension surplus

 

 

2,575

 

1,512

 

1,161

 

 

 

23,869

 

20,811

 

21,995

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Stocks

 

 

4,542

 

5,709

 

4,994

Trade and other receivables

 

 

18,817

 

16,052

 

18,425

Cash and cash equivalents

 

 

22,453

 

20,590

 

22,819

 

 

 

45,812

 

42,351

 

46,238

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Trade and other payables

 

 

(12,354)

 

(11,414)

 

(13,055)

Current tax liabilities

 

 

(1,375)

 

(1,345)

 

(1,575)

Overseas tax (denominated in euros)

 

 

(404)

 

(44)

 

(250)

Bank loans

 

 

(493)

 

(4,985)

 

(4,995)

Obligations under finance leases

 

 

(61)

 

(129)

 

(102)

 

 

 

(14,687)

 

(17,917)

 

(19,977)

 

 

 

 

 

 

 

 

Net current assets

 

 

31,125

 

24,434

 

26,261

 

 

 

 

 

 

 

 

Total assets less current liabilities

 

 

54,994

 

45,245

 

48,256

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

Bank loans

 

 

(4,471)

 

-

 

-

Obligations under finance leases

 

 

(25)

 

(84)

 

(49)

 

 

 

(4,496)

 

(84)

 

(49)

 

 

 

 

 

 

 

 

Net assets

 

 

50,498

 

45,161

 

48,207

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

Called-up share capital

 

 

423

 

423

 

423

Share premium

 

 

13

 

13

 

13

Retained earnings

 

 

45,917

 

41,096

 

43,619

Translation reserve

 

 

3,890

 

3,374

 

3,897

Other reserves

 

 

245

 

245

 

245

 

 

 

 

 

 

 

 

Surplus attributable to equity holders of the parent

50,488

 

        45,151

 

48,197

 

 

 

 

 

 

 

 

Minority interest

 

 

10

 

10

 

10

 

 

 

 

 

 

 

 

Total equity

 

 

50,498

 

45,161

 

48,207

 

Consolidated cash flow statement

for the six months ended 30 June 2017 (unaudited)

 

 

6 months

ended

30 June

2017

 

6 months

ended

30 June

2016

 

 

12 months

ended

31 December

2016

 

                     £'000

 

                   £'000

 

                   £'000

Cash flows from operating activities

 

 

 

 

 

Cash generated from operations

8,606

 

7,111

 

17,693

Interest paid

(56)

 

(66)

 

(136)

Net UK corporation tax paid

(1,208)

 

(941)

 

(1,846)

Overseas tax paid

(340)

 

(263)

 

(578)

 

 

 

 

 

 

Net cash inflow from operating activities

7,002

 

5,841

 

15,133

 

 

 

 

 

 

Investing activities

 

 

 

 

 

Sale of property, plant and equipment

392

 

415

 

673

Purchase of property, plant and equipment

(2,594)

 

(2,237)

 

(5,392)

Interest received

38

 

124

 

241

Net cash outflow from investing activities

(2,164)

 

(1,698)

 

(4,478)

 

 

 

 

 

 

Financing activities

 

 

 

 

 

Loan repayments

(5,000)

 

(1,000)

 

(1,000)

New loans raised net of arrangement fees

4,962

 

-

 

-

Finance lease capital repayments

(64)

 

(53)

 

(116)

Equity dividends paid

(5,029)

 

(5,029)

 

(10,058)

Net cash outflow from financing activities

(5,131)

 

(6,082)

 

(11,174)

 

 

 

 

 

 

Net decrease in cash and cash equivalents

(293)

 

(1,939)

 

(519)

 

 

 

 

 

 

Cash and cash equivalents at the beginning of the period

22,819

 

20,715

 

20,715

Effect of foreign exchange rate changes

(73)

 

1,814

 

2,623

 

 

 

 

 

 

Cash and cash equivalents at end of the period

22,453

 

20,590

 

22,819

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

(293)

 

(1,939)

 

(519)

Net cash outflow from the decrease in debt

102

 

1,053

 

1,115

Non-cash movement re new financial leases

-

 

(84)

 

(84)

Non-cash movements re costs of raising loan finance

(6)

 

(10)

 

(20)

Decrease in net funds during the period

(197)

 

(980)

 

492

Opening net funds at the beginning of period

17,673

 

14,558

 

14,558

Effect of foreign exchange rate changes

(73)

 

1,814

 

 2,623  

Closing net funds at the end of period

17,403

 

15,392

 

17,673

 

Consolidated statement of comprehensive total income (CSOCTI)

for the six months ended 30 June 2017 (unaudited)

 

 

6 months

ended
30 June
2017

6 months

ended
30 June
2016

12 months

ended
31 December
2016

 

£'000

£'000

£'000

 

 

 

 

Profit for the financial period

6,570

6,195

14,473

 

             

             

             

Other comprehensive income:

 

 

 

 

 

 

 

Items that may be reclassified to profit and loss:

 

 

 

Currency translation differences on foreign currency net investments

(7)

1,401

1,924

 

 

 

 

Items that will never be reclassified to profit and loss:

 

 

 

Remeasurement of defined benefit liabilities and assets

935

(1,305)

(2,201)

Related deferred tax

(178)

248

418

 

             

             

             

Other comprehensive income for the period net of tax

750

344

141

 

             

             

             

Total comprehensive income for the period

7,320

6,539

14,614

 

                

                

                

 

Notes to the consolidated interim financial statements

for the six months ended 30 June 2017

 

1       General information

Basis of preparation

These interim financial statements have been prepared in accordance with International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) as adopted by the European Union and with the Companies Act 2006.

The information for the 12 months ended 31 December 2016 does not constitute the group's statutory accounts for 2016 as defined in Section 434 of the Companies Act 2006. Statutory accounts for 2016 have been delivered to the Registrar of Companies. The auditor's report on those accounts was unqualified and did not contain statements under Section 498(2) or (3) of the Companies Act 2006. These interim financial statements, which were approved by the Board of Directors on 28 September 2017, have not been audited or reviewed by the auditors.

The interim financial statement has been prepared using the historical cost basis of accounting except for:

(i)      Properties held at the date of transition to IFRS which are stated at deemed cost;

(ii)     Assets held for sale which are stated at the lower of  (i) fair value less anticipated disposal costs and (ii) carrying value;

(iii)    Derivative financial instruments (including embedded derivatives) which are valued at fair value; and

(iv)   Pension scheme assets and liabilities calculated at fair value in accordance with IAS 19.

Functional and presentational currency

The financial statements are presented in pounds Sterling because that is the functional currency of the primary economic environment in which the group operates.

2       Accounting policies

These interim financial statements have been prepared on a consistent basis and in accordance with the accounting policies set out in the group's Annual Report and Financial Statements 2016.

3       Revenue

An analysis of the group's revenue is as follows:

 

6 months

ended

30 June

2017

£'000

 

6 months

ended

30 June

2016

£'000

 

12 months

ended

31 December

 2016

£'000

Continuing operations

 

 

 

 

 

Hire

29,405

 

25,450

 

54,852

Sales

3,906

 

2,806

 

6,386

Installations

2,023

 

2,031

 

4,151

 

 

 

 

 

 

Group consolidated revenue from the sale of goods and provision of services

 

35,334

 

 

30,287

 

 

65,389

  

The geographical analysis of the group's revenue by origination is:

 

6 months

ended

 30 June

     2017

 

6 months

ended

30 June

2016

 

12 months

ended

31 December

 2016

 

                  £'000

 

£'000

 

£'000

 

 

 

 

 

 

United Kingdom

22,624

 

20,171

 

41,754

Rest of Europe

7,067

 

4,787

 

12,105

Middle East and Africa

5,643

 

5,329

 

11,530

 

 

 

 

 

 

 

35,334

 

30,287

 

65,389

The geographical analysis of the groups' revenue by destination is not materially different to that by origination.

4       Taxation

 

6 months

ended

 30 June

     2017

 

6 months

ended

30 June

2016

 

12 months

ended

31 December

 2016

 

                  £'000

 

£'000

 

£'000

Current tax

 

 

 

 

 

UK corporation tax at 19.25% (30 June 2016 and 31 December 2016:  20%)

 

1,008

 

 

980

 

 

2,253

Adjustments in respect of prior periods

-

 

-

 

(138)

 

1,008

 

980

2,115

Overseas tax

474

 

299

 

838

Adjustments to overseas tax in respect of prior periods

3

 

7

 

(26)

Total current tax charge

1,485

 

1,286

 

2,927

 

 

 

 

 

 

Deferred tax

 

 

 

 

 

Deferred tax on the origination and reversal of temporary differences

55

 

48

 

38

Adjustments in respect of prior periods

-

 

-

 

103

Total deferred tax charge

55

 

48

 

141

 

 

 

 

 

 

Total tax charge for the financial period attributable to

continuing operations

 

1,540

 

 

1,334

 

 

3,068

  

The tax charge for the financial period can be reconciled to the profit before tax per the income statement multiplied by the effective standard annualised corporation tax rate in the UK of 19.25% (30 June 2016 and 31 December 2016: 20%) as follows:

 

6 months

 ended

30 June

2017

6 months

 ended

30 June

2016

12 months

ended

31 December

 2016

 

£'000

£'000

                 £'000

 

 

 

 

Profit before taxation from continuing and total operations

8,110

7,529

17,541

 

 

 

 

Tax at the UK effective annualised corporation tax rate of 19.25%

  (30 June 2016 and 31 December 2016: 20%)

 

1,561


1,506

 

3,508

Effects of:

 

 

 

Expenses not deductible for tax purposes

57

45

48

Movement in overseas trading losses

13

(46)

(87)

Effect of different tax rates of subsidiaries operating abroad

(93)

(175)

(337)

Effect of change in rate of corporation tax

(1)

(3)

(3)

Adjustments to tax charge in respect of previous periods

3

7

(61)

Total tax charge for the financial period

1,540

1,334

3,068

 

 

 

 

The total effective tax charge for the financial period represents the best estimate of the weighted average annual effective tax rate expected for the full financial year applying tax rates that have been substantively enacted by the balance sheet date. Accordingly UK corporation tax has been provided at 19.25%; the rate of 19% for the tax year ending 31 March 2018 having been substantially enacted in October 2015. UK deferred tax has been provided at 19% being the rate substantially enacted at the balance sheet date at which the timing differences are expected to substantially reverse. 

5       Earnings per share

Basic earnings per share

The basic figures have been calculated by reference to the weighted average number of ordinary shares in issue and the earnings as set out below.  There are no discontinued operations in any period.

 

6 months ended 30 June 2017

 

Continuing

earnings

Number of

Shares

 

£'000

 

 

 

 

Basic earnings/weighted average number of shares

6,570

42,262,082

 

 

 

Basic earnings per ordinary share (pence)

15.55p

 

 

 

 

 

 

6 months ended 30 June 2016

 

Continuing

earnings

Number of

shares

 

£'000

 

 

 

 

Basic earnings/weighted average number of shares

6,195

42,262,082

 

 

 

Basic earnings per ordinary share (pence)

14.66p

 

 

 

 

 

 

     12 months ended 31 December 2016

 

Continuing

earnings

Number of

shares

 

£'000

 

 

 

 

Basic earnings/weighted average number of shares

14,473

42,262,082

 

 

 

Basic earnings per ordinary share (pence)

34.25p

 

Diluted earnings per share

There were no dilutive instruments outstanding at 30 June 2017 or either of the comparative periods and therefore there is no difference in the basic and diluted earnings per share for any of these periods. There were no discontinued operations in any period. 

6       Dividend payments

Dividends declared and paid on ordinary one pence shares during the 6 months ended 30 June 2017 were as follows:

 

Paid during the 6 months ended 30 June 2017

 

Pence per share

Total dividend
paid

 

 

£'000

 

 

 

Final dividend for the year ended 31 December 2016 paid to members on the register as at 26 May 2017 on 26 June 2017

 

11.90p

 

5,029

 

 

 

The above dividend was charged against reserves during the 6 months ended 30 June 2017.

On 28 September 2017 the directors declared an interim dividend of 11.90 pence per ordinary share which in total amounts to £5,029,000. This will be paid on 3 November 2017 to shareholders on the register on 6 October 2017 and will be charged against reserves in the second half of 2017.

Dividends declared and paid on ordinary one pence shares during the 6 months ended 30 June 2016 were as follows:

 

Paid during the 6 months ended 30 June 2016

 

Pence per share

Total dividend
declared

 

 

£'000

 

 

 

Final dividend for the year ended 31 December 2015 paid to members on the register as at 27 May 2016 on 24 June 2016 

 

11.90p

 

5,029

 

 

 

The above dividend was charged against reserves during the 6 months ended 30 June 2016.

Dividends declared and paid on ordinary one pence shares during the 12 month period ended 31 December 2016 were as follows:

 

Paid during the 12 months ended

31 December 2016

 

Pence per share

Total dividend
paid

 

 

£'000

 

 

 

Final dividend for the year ended 31 December 2015 paid to members on the register as at 27 May 2016 on 24 June 2016 

 

11.90p

 

5,029

Interim dividend declared on 28 September 2016 and paid to shareholders on the register as at 7 October 2016 on 2 November 2016

 

11.90p

 

5,029

 

23.80p

10,058

The above dividends were charged against reserves during the 12 months ended 31 December 2016.

7       Retirement benefit obligations - Defined benefit pension scheme

The group closed the UK group defined benefit pension scheme to future accrual as at 29 December 2002. The assets of the defined benefit pension scheme continue to be held in a separate trustee administered fund.

As at 30 June 2017 the group had a net defined benefit pension scheme surplus, calculated in accordance with IAS 19 (revised) using the assumptions as set out below, of £2,575,000 (30 June 2016: £1,512,000;  31 December 2016: £1,161,000). The asset has been recognised in the financial statements as the directors are satisfied that it is recoverable in accordance with IFRIC 14.

Following the triennial recalculation of the funding deficit as at 31 December 2013 a revised schedule of contributions and recovery plan was agreed with the pension scheme trustees in June 2014. In accordance with this schedule of contributions, which is effective from 1 January 2014, the group made additional contributions in 2014 to remove the funding deficit calculated as at 31 December 2013 and this has now been eliminated as at 31 December 2014. Subsequently, to date, the group has continued to make a contribution towards expenses of £10,000 per month. In addition the group made an additional voluntary contribution of £32,000 per month from January 2016 and this was increased to £80,000 per month from April 2016. The formal triennial funding valuation as at 31 December 2016 is currently being finalised and this is likely to show a deficit of £0.7 million. The group has agreed to continue to make the current level of monthly contributions until either the formal approval of the schedule of contributions or the elimination of the estimated deficit, whichever is the earlier.

Assumptions used to calculate the scheme surplus

A qualified independent actuary has updated the results of the provisional December 2016 (30 June 2016 and 31 December 2016: December 2013) full actuarial valuation to calculate the surplus as disclosed below:

The major assumptions used to determine the present value of the scheme's defined benefit obligation were:

 

30 June

2017

%

30 June

2016

%

31 December

2016

%

Rate of increase in pensionable salaries

Rate of increase in pensions in payment

Discount rate applied to scheme liabilities

Inflation assumption - RPI

Inflation assumption - CPI

Percentage of members taking maximum tax free lump sum on retirement

N/A

3.20

2.60

3.20

2.20

 

90.0

N/A

2.90

2.80

2.90

1.90

                        

90.0

N/A

3.30

2.70

3.30

2.30

 

90.0

 

From 1 January 2011, the government amended the basis for statutory increases to deferred pensions and pensions in payment. Such increases are now based on inflation measured by the Consumer Price Index (CPI) rather than the Retail Price Index (RPI). Having reviewed the scheme rules and considered the impact of the change on this pension scheme, the directors consider that future increases to (i) all deferred pensions and (ii) Guaranteed Minimum Pensions accrued between 6 April 1988 and 5 April 1997 and currently in payment will be based on CPI rather than RPI. Accordingly, this assumption was adopted as at 31 December 2010 and subsequently.

Assumptions regarding future mortality experience are set based on advice in accordance with published statistics. The mortality table used at 30 June 2017 is 110% S2NA CMI2015 (30 June 2016 and 31 December 2016: 110% S2NA CMI2015) with a 1% per annum long term improvement for both males and females (30 June 2016 and 31 December 2016: 1% males and females).

The assumed average life expectancy in years of a pensioner retiring at the age of 65 given by the above tables is as follows: 

 

 

30 June

2017

30 June

2016

31 December

2016

 

 

 

 

Male, current age 45

Female, current age 45

22.6 years

24.9 years

22.6 years

24.9 years

22.6 years

24.9 years

 

Valuations

 

The fair value of the scheme's assets, which are not intended to be realised in the short term and may be subject to significant change before they are realised, and the present value of the scheme's liabilities, which are derived from cash flow projections over long periods and are inherently uncertain, were as follows:


30 June

2017

£'000


30 June

2016

£'000


31 December

              2016

 £'000







Total fair value of plan assets

44,403


40,768


43,368

Present value of defined benefit funded obligation calculated in
 accordance with stated assumptions

 

(41,828)


 

(39,256)


 

(42,207)

Surplus in the scheme calculated in accordance with stated
 assumptions recognised in the balance sheet

 

2,575


 

1,512


 

1,161

The movement in the fair value of the scheme's assets during the period was as follows: 

 

 30 June

 2017

  £'000

 

30 June

 2016

  £'000

 

31 December

 2016

£'000

 

 

 

 

 

 

Fair value of plan assets at the start of the period

43,368

 

37,734

 

37,734

Interest income on pension scheme assets

580

 

688

 

1,383

Actual return less interest income on pension scheme assets

848

 

2,737

 

4,927

Employer contributions

540

 

396

 

936

Benefits paid   

(851)

 

(717)

 

(1,490)

Administration expenses charged in the income statement

(82)

 

(70)

 

(122)

 

 

 

 

 

 

Fair value of plan assets at the end of the period

44,403

 

40,768

 

43,368

The movement in the present value of the defined benefit obligation during the period was as follows:

 

30 June

2017

 

30 June

2016

 

31 December 2016

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

Present value of defined benefit funded at the beginning of the period

(42,207)

 

(35,291)

 

(35,291)

Interest on defined benefit obligation

(559)

 

(640)

 

(1,278)

Actuarial gain/(loss) recognised in the CSOCTI calculated in

accordance with stated assumptions

 

87

 

 

(4,042)

 

 

(7,128)

Benefits paid

851

 

717

 

1,490

 


 

 

 

 

Closing present value of defined benefit funded obligation calculated

in accordance with stated assumptions

 

(41,828)

 

 

(39,256)

 

 

(42,207)

 

 

 

 

 

 

 

Amounts recognised in the income statement

The amounts (charged) / credited in the income statement were:

 

            30 June

                 2017

 

           30 June

               2016

 

  31 December

               2016

 

                £'000

 

               £'000

 

               £'000

 

 

 

 

 

 

Interest income on pension scheme assets

580

 

688

 

1,383

Interest expense on pension scheme liabilities

(559)

 

(640)

 

(1,278)

Net pension interest credit included within finance income

21

 

48

 

105

Scheme administration expenses

(82)

 

(70)

 

(122)

Net pension charge in the income statement

(61)

 

(22)

 

(17)

 

 

 

 

 

 

Actuarial gains and losses recognised in the consolidated statement of comprehensive total income (CSOCTI)

The amounts credited/(charged)  in the CSOCTI were:

 

            30 June

                 2017

 

           30 June

               2016

 

  31 December

               2016

 

                £'000

 

               £'000

 

               £'000

 

 

 

 

 

 

Actual return less interest income on pension scheme assets

848

 

2,737

 

4,927

Experience gains and losses arising on plan obligation

210

 

281

 

-

Changes in demographic and financial assumptions underlying the present value of plan obligations

 

(123)

 


(4,323)

 


(7,128)

Actuarial gain/(loss) in calculated in accordance with stated assumptions recognised in the CSOCTI

 

935

 


(22)

 


(2,201)

 

 

 

 

 

 

8       Called up share capital

 

 30 June

 2017

 

30 June

 2016

 

31 December

 2016

 

                £'000

 

           £'000

 

             £'000

Issued and fully paid:

 

 

 

 

 

42,262,082 ordinary shares of one pence each (30 June 2016 and 31 December 2016: 42,262,082 ordinary shares of one pence each)

 

                   423

 

 

               423

 

 

                423

The company did not buy back any shares for cancellation during the 6 months ended 30 June 2017 or either of the comparative periods. The company did not issue any shares in the period or either of the comparative periods. No share options were granted, forfeited or expired during any of the periods and there were no share options outstanding at any period end.

The company has one class of ordinary shares which carry no right to fixed income.

9       Cash generated from operations

 

6 months

ended

30 June

2017

 

6 months

ended

30 June

2016

 

12 months

ended

31 December 2016

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

Profit for the period attributable to equity shareholders

6,570

 

6,195

 

14,473

Adjustments for:

 

 

 

 

 

Taxation charge

1,540

 

1,334

 

3,068

Finance costs

59

 

73

 

150

Finance income

(49)

 

(145)

 

(308)

Inter-company foreign exchange gains and losses

51

 

(1,062)

 

(1,567)

Profit on the sale of property, plant and equipment

(292)

 

(298)

 

(462)

Depreciation

3,013

 

2,702

 

5,310

 

 

 

 

 

 

EBITDA*

10,892

 

8,799

 

20,664

 

 

 

 

 

 

Excess of pension contributions compared with service and

administration expenses

 

(458)

 

 

 

(326)

 

 

(814)

Workings capital movements:

 

 

 

 

 

Stocks

(728)

 

(2,195)

 

(2,251)

Trade and other receivables

(402)

 

508

 

(1,876)

Trade and other payables

(698)

 

325

 

1,970

Cash generated from operations

8,606

 

7,111

 

17,693

 

 

 

 

 

 

* Earnings Before Interest, Taxation, Depreciation, profit on the sale of property, plant and equipment, Amortisation and non-recurring items.

10     Analysis of net funds

 

 30 June

 2017

 

30 June

2016

 

31 December

 2016

 

£'000

 

                 £'000

 

               £'000

 

 

 

 

 

 

Cash and cash equivalents per cash flow statement

22,453

 

20,590

 

22,819

 

 

 

 

 

 

Bank loans

(4,964)

 

(4,985)

 

(4,995)

Obligations under finance leases

(86)

 

(213)

 

(151)

Gross debt

(5,050)

 

(5,198)

 

(5,146)

Net funds

17,403

 

15,392

 

17,673

11     Distribution of interim financial statements

Following a change in regulations in 2008, the company is no longer required to circulate this half year report to shareholders. This enables us to reduce costs associated with printing and mailing and to minimise the impact of these activities on the environment. A copy of the interim financial statements is available on the company's website, www.andrews-sykes.com.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR FDLFLDKFLBBL

Top of Page