Final Results

RNS Number : 8333A

S & U PLC

26 March 2013

 



                                                                                                                                                                                                                          26 March 2013

S&U PLC

("S&U" or "the Company")

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 JANUARY 2013

S&U, Britain's foremost niche home credit and motor finance provider, today announces its preliminary results for the year ended 31 January 2013:

Key Financials:

·      Profit before taxation up 16% at £14.2m (2012: £12.2m)

·      Earnings per share up 22% at 92.6p (2012: 76.1p)

·      Revenues up 6% at £55.0m (2012: £51.9m)

·      Proposed final dividend of 20p (2012: 18p); total dividend in respect of the year increased to 46p (2012: 41p) up 12%

·      Strong balance sheet:

o  Net assets increased by 11% to £61.1m (2012: £54.9m)

o  Borrowings increased to £20.6m (2012: £18.8m) with group gearing reduced to 33.7% (2012: 34.3%)

o  Additional £7m medium term borrowings facility put in place post year end with a maturity date of March 2018

·      Divisional highlights:

o  Motor Finance excellent profit before taxation up 37% to £8.1m (2012: £5.9m); driven by 17% revenue growth and record collections quality

o  Home Credit profit before taxation slightly down at £6.1m in 52 weeks (2012: £6.3m in 53 weeks) - like for like profit up 2% on last year

Operational Highlights:

·      Group annual collections up over £7m on prior year; Home Credit up nearly £2m and Motor Finance up over £5m

·      Further 35% increase in Motor Finance advances this year with continuing good trends in collection quality

·      Stable Home Credit; further Home Credit product developments planned for H2 2013

·      Further projected investment in Motor Finance of £6m for 2013/2014 reflecting sensible and achievable expansion plans

Anthony Coombs, Chairman of S&U plc commented:

"We celebrate S&U's 75^th Anniversary by announcing record profit before tax of £14.2m. Our founder Clifford Coombs' watchwords were his care for his customers, his obsession with the quality of service he provided them and the inspirational way he imbued these qualities in those who worked for them.

This passion is still S&U's guiding purpose today and as a result, we face the future with renewed vigour and great confidence."

Enquiries:

Anthony Coombs                                                         S&U plc                              07767 687 150

Media and Investor Relations

Will Swan/ Rebecca Hunt                                           Smithfield                            0207 360 4900

Financial Advisers, Sponsors and Brokers

Adrian Trimmings/Jamie Cameron                            Arden Partners                   0207 614 5900

 

CHAIRMAN'S STATEMENT

S&U's 75^th Anniversary

We celebrate this milestone in S&U's history by announcing record profit before tax of £14.2m (2012: £12.2m).  A lifetime ago my Grandfather Clifford Coombs ("CC") established a credit drapery business in Birmingham, his home since walking there from the Welsh valleys some 20 years before.  CC's watchwords were his care for his customers, his obsession with the quality of service he provided them and the inspirational way he imbued these qualities in those who worked for him.

Over the past 75 years, neither time nor technology has changed this.  This passion has become the guiding purpose of two succeeding generations of the Coombs family and is, and will remain, the company's raison d'être.  As a result, and whatever the slings and arrows of economic fortune, we face the future with vigour and great confidence.

Financial Review

Group profit before tax is £14.2m an increase of £2m on last year.  Group revenue is £55m; up by 6% on 2012.  Consumer confidence in Britain generally has reflected the frailty of the economic recovery.  That is particularly evident in Loansathome4U, our home credit business, where conservative and responsible under-writing has restrained growth but slightly improved the long term health of our book.  Although Home Credit profit before tax is slightly down at £6.1m (2012: £6.3m), last year contained 53 rather than 52 trading weeks. The like for like profits increase of 2% continues the trend of the past 4 years.

Advantage Finance ("Advantage"), our motor finance subsidiary, continues to power ahead gaining market share and beating its own ambitious targets for growth, new products and customer quality.  Profit before tax has reached £8.1m (2012: £5.9m) nearly doubling in 2 years.  Customer numbers are now a record 15,000.

Advantage continues to exceed our projection for growth.  We have therefore invested a further £5m this year and anticipate doing so again next year.  Higher levels of transactions and associated new products have raised Group receivables to a record level.  New medium-term bank facilities are now in place to fund this and as always to provide prudent head room for further expansion. At 33.7% our Group gearing has again fallen to its lowest level for a decade.

Our balance sheet reflects this approach.  Net assets for S&U are now £61.1m (2012: £54.9m) largely driven by a rise in net receivables of just under £9m to £86.3m.  Good cash generation in particular from our very consistent Home Credit division has limited our borrowing to just £20.6m (2012: £18.8m).

Highlights

§ Profit before tax increased by 16% at £14.2m (2012: £12.2m) 

§ Earnings per share of 93p (2012: 76p)

§ Final dividend of 20p (2012: 18p)

§ Annual total dividend for the year a record 46p per ordinary share (2012: 41p)

§ Group gearing at 33.7% (2012: 34.3%) and further medium-term facilities in place

Dividend

The Group's continuing progress should be reflected not only in the rewards of those producing the results but also in our return to shareholders.  Again this year we have an opportunity both to increase dividends and to slightly improve dividend cover.  The Board therefore proposes to recommend a final dividend of 20p per ordinary share.  This will be paid on the 12^th July 2013 to ordinary shareholders on the register on the 21^st June 2013, subject to approval by shareholders at the Annual General Meeting on the 24^th May 2013.

This means that following payment of interim dividends in November last year and April this year, total dividends for this year will be 46p (2012: 41p) per ordinary share, an increase of 12.1%. Dividend cover will rise from 1.8 times to just over 2 times.

Operating Results Year Ended Year Ended 31 January 2013 31 January 2012 £m £m Revenue 55.0 51.9 Cost of Sales 18.4 17.9 Gross Profit 36.6 34.0 Administrative Expenses 21.8 21.2 Operating Profit 14.8 12.8 Finance Costs (Net) 0.6 0.6 Profit before Taxation 14.2 12.2

Home Credit

§ Profits at £6.1m (2012: £6.3m).  Stable book debt but increased collections

§ Healthy and stable cash generation of £2.9m (2012: £2.2m)

§ New market opportunities and products in development

§ Satisfactory review of remedies by Competition Commission

§ Sensible conclusions of review on Credit charge caps from OFT

Although the profit of Loansathome4U, our Home Credit division, fell to £6.1m from £6.3m a year ago, this still represents the second highest ever, and a rise of 2% on a like for like basis as last year had 53 weeks. Debt quality as reflected in net collections against balances outstanding also improved.  Nevertheless, since the business relies upon very close and long term relationships with its customers, Loansathome4U cannot be immune from the communities it serves and the economic challenges they face.  

Undoubtedly, the current economic uncertainties have made customers more cautious.  This understandable and responsible reaction to employment prospects and to impending state benefit changes, means that whilst valuing the flexible service home credit provides, customers are trading slightly less often and prefer smaller loans over a shorter period.  In addition this places a premium on guiding customers through any difficulties they experience, being rigorous as to the financial sustainability of new customers and being alert to opportunities for responsible lending as they arise.  In short we depend upon good customer service and the quality and commitment of our home credit representatives who provide it.  These are strengths which have allowed Loansathome4U to accommodate the slightly higher rate of impairment seen during the year.  The result has been a record level of collections productivity per representative and levels of credit availability up nearly 7% on 2012. 

The climate for acquiring new customers is becoming more challenging.  We are therefore developing new products for the benefit of our existing customers.  We are also building others specifically designed for the more affluent working men and women who have become disillusioned with remote finance generally.  Both are scheduled for introduction this year.

Our responsible approach to credit is increasingly supported by our regulator. Excellent relations are maintained with the OFT, Local Trading Standards Offices and Money Advisors.  It was encouraging that the recent review of remedies carried out by the Competition Commission into home credit following their 2006 Inquiry was favourable.  Home credit represents about £4bn of the £200bn annual consumer credit market and home credit experiences high customer satisfaction ratings (2013 Report by University of Bristol Personal Finance Research Centre).  We are therefore pleased that the much delayed High Cost Credit Review from the OFT has confirmed this view of the home credit industry.  We are therefore hopeful that this in turn will result in the Financial Conduct Authority, OFT's successor as the consumer credit regulator, adopting a proportionate, low cost and statute based approach to oversight of the UK's 80,000 consumer credit licence holders.

Motor Finance

§ Record profits of £8.1m (2012: £5.9m) - the 13^th successive year

§ 50,000 customers milestone reached

§ A new record for transactions, customer numbers and turnover

§ Net Receivables were a record £52.5m (2012: £42.3m)

§ Collections record at just under £3m per month

§ New products extend our customer range and broker service

The remarkable and relentless rise of Advantage, our motor finance business based in Grimsby, continues apace.  Profits before tax this year are £8.1m (2012: £5.9m) and continue an unbroken run since its founding 14 years ago.  This year Advantage financed the 50,000^th deal in its history, receivables rose to a record £52.5m (2012: £42.3m) and revenues to £20.8m an increase of 17%.

But this is no dash for growth.  Advantage's market is likely to produce very significant opportunities for the foreseeable future.  Its sophisticated under-writing and its unique scoring system have meant record levels of service for its growing band of brokers.  This allows Advantage's under-writers to filter over 500 transactions per month from around 17,000 applications.  The quality of Advantage's loan book meant that it collected over £3m per month for the first time this year and held impairment levels to their lowest absolute, as well as relative, levels for over 5 years.

A business of this calibre is constantly evolving and innovating. To promote this and its further expansion, we will invest £6m in Advantage this year.  Both its record and the remarkable commitment and talents of those who work there richly merit this.

Communitas, our second mortgage operation, continues in run-off but has happily broken even this year after a small loss in 2012.  Total book debt now outstanding is just £326,000 against £462,000 last year.

Funding

·      Group gearing at 33.7% (2012: 34.3%)

·      Group borrowings at £20.6m (2012: £18.8m) despite £5m investment in Advantage

·      New medium term facilities allow increased headroom for growth and expenditure

S&U's prudent management has ensured excellent relations with our banking partners.  This year further medium term facilities have been raised and extended to 2018 so that core funding for the period is amply covered.  In addition we have substantial short term facilities for opportunistic growth.

Our Community

Men do not live by bread alone and, in its 75 year history neither has S&U.  Our involvement in and dependence upon the people of the communities in which we work is much more deep rooted than the current vogue for "CSR" and other corporate acronyms.

Good business should be enjoyable and personally rewarding.  That is why we increasingly support organisations as diverse as the National Institute for Conductive Education, The Princes Trust, The New Marie Curie Hospice in Solihull and the Birmingham Royal Ballet.  Moreover this year, S&U's charitable giving will be channelled through The Keith Coombs Charitable Trust in honour of our late Chairman.  Its focus will primarily be on local children's charities.

I pay tribute to the enthusiasm and energy of all in the Group who devote their precious spare time to these felicitous activities.

Current Trading and Outlook

Against an austere economic background where politicians support for enterprise is muted and ideas for growth and de-regulation thin on the ground, S&U continues to prosper.  We do so with the loyalty of our customers, the dedication of our people who serve them and the resolution of our management team and Board.  They, in turn, are sustained by the long term commitment of our founding family shareholders and the philosophy established 75 years ago of our founder Clifford Coombs.

Together we are confident of even further progress in the years to come.

Anthony Coombs

Chairman

25 March 2013

INCOME STATEMENT

Year ended 31 January 2013

	Note			2013 £000	2012 £000
Revenue	3			54,990	51,919
Cost of sales	4			(18,411)	(17,870)
Gross profit				36,579	34,049
Administrative expenses				(21,768)	(21,237)
Operating profit				14,811	12,812
Finance costs (net)	5			(581)	(596)
Profit before taxation	3			14,230	12,216
Taxation				(3,350)	(3,281)
Profit for the year attributable to equity holders				10,880	8,935
Earnings per share basic	6			92.6p	76.1p
Earnings per share diluted	6			91.5p	75.1p
Dividends per share
-   Proposed Final Dividend				20.0p	18.0p
-   Interim dividends in respect of the year				26.0p	23.0p
-   Total dividend in respect of the year				46.0p	41.0p
-   Paid in the year				42.0p	37.0p

All activities derive from continuing operations.

STATEMENT OF COMPREHENSIVE INCOME

				2013 £000	2012 £000
Profit for the year attributable to equity holders				10,880	8,935
Actuarial loss on defined benefit pension scheme				(26)	(15)
Credit for future cost of share based payments				256	176
Tax charge on items taken directly to equity				-	16
Total Comprehensive Income for the year				11,110	9,112

BALANCE SHEET
31 January 2013

	Note	2013 £000	2012 £000
ASSETS
Non current assets
Property, plant and equipment		1,790	1,625
Amounts receivable from customers	7	34,804	27,726
Retirement benefit asset		20	20
Deferred tax assets		127	64
		36,741	29,435
Current Assets
Inventories		115	129
Amounts receivable from customers	7	51,516	49,774
Trade and other receivables		333	394
Cash and cash equivalents		9	17
		51,973	50,314
Total Assets		88,714	79,749
LIABILITIES
Current liabilities
Bank overdrafts and loans		(2,574)	(806)
Trade and other payables		(2,029)	(1,606)
Tax Liabilities		(2,186)	(2,101)
Accruals and deferred income		(2,409)	(1,924)
		(9,198)	(6,437)
Non current liabilities
Bank loans		(18,000)	(18,000)
Financial liabilities		(450)	(450)
		(18,450)	(18,450)
Total liabilities		(27,648)	(24,887)
NET ASSETS		61,066	54,862
Equity
Called up share capital		1,669	1,668
Share premium account		2,190	2,173
Profit and loss account		57,207	51,021
Total equity		61,066	54,862

STATEMENT OF CHANGES IN EQUITY

Year ended 31 January 2013

	Called up share capital £000	Share premium account £000	Profit and loss account £000	Total equity £000
At 1 February 2011	1,667	2,136	46,264	50,067
Profit for year	-	-	8,935	8,935
Other comprehensive income for year	-	-	177	177
Total comprehensive income for year	-	-	9,112	9,112
Issue of new shares in year	1	37	-	38
Dividends	-	-	(4,355)	(4,355)
At 31 January 2012	1,668	2,173	51,021	54,862
Profit for year	-	-	10,880	10,880
Other comprehensive income for year	-	-	230	230
Total comprehensive income for year	-	-	11,110	11,110
Issue of new shares in year	1	17	-	18
Dividends	-	-	(4,924)	(4,924)
At 31 January 2013	1,669	2,190	57,207	61,066

CASH FLOW STATEMENT

Year ended 31 January 2013

	Note	2013 £000	2012 £000
Net cash from operating activities	8	3,848	7,896
Cash flows used in investing activities
Proceeds on disposal of property, plant and equipment		77	65
Purchases of property, plant and equipment		(795)	(725)
Net cash used in investing activities		(718)	(660)
Cash flows used in financing activities
Dividends paid		(4,924)	(4,355)
Issue of new shares		18	38
Issue of new borrowings		-	18,000
Repayment of borrowings		-	(22,000)
Net increase in overdraft		1,768	806
Net cash used in financing activities		(3,138)	(7,511)
Net decrease in cash and cash equivalents		(8)	(275)
Cash and cash equivalents at the beginning of year		17	292
Cash and cash equivalents at the end of year		9	17
Cash and cash equivalents comprise
Cash and cash in bank		9	17

There are no cash and cash equivalent balances which are not available for use by the Group (2012: £nil).

1.       SHAREHOLDER INFORMATION

1.1 Preliminary Announcement

The figures shown for the year ended 31 January 2013 are not statutory accounts within the meaning of section 435 of the Companies Act 2006. The statutory accounts for the year ended 31 January 2013 on which the auditors have given an unqualified audit report and did not contain an adverse statement under section 498(2) or 498(3) of the Companies Act 2006 will be delivered to the Registrar of Companies after the Annual General Meeting. The figures shown for the year ended 31 January 2012 are not statutory accounts. A copy of the statutory accounts has been delivered to the Registrar of Companies, contained an unqualified audit report and did not contain an adverse statement under section 498(2) or 498(3) of the Companies Act 2006. This announcement has been agreed with the Company's auditors for release. A copy of this preliminary announcement will be published on the website www.suplc.co.uk. The Directors are responsible for the maintenance and integrity of the Company website.  Legislation in the United Kingdom governing the preparation and dissemination of financial statements differ from legislation in other jurisdictions.

1.2 Annual General Meeting

The Annual General Meeting will be held at 11.30am on 24 May 2013 at the Nuthurst Grange Country House Hotel, Hockley Heath, Warwickshire B94 5NL.

1.3 Dividend

If approved at the Annual General Meeting a final dividend of 20p per Ordinary Share is proposed, payable on 12 July 2013 with a record date of 21 June 2013.

1.4 Annual Report

The 2013 Annual Report and Financial Statements and AGM notice will be displayed in full on our website www.suplc.co.uk in due course and also posted to those Shareholders who have still opted to receive a hardcopy. Copies of this announcement are available from the Company Secretary, S & U plc, Royal House, Prince's Gate, Homer Road, Solihull, West Midlands B91 3QQ.

2.       KEY ACCOUNTING POLICIES

The 2013 financial statements have been prepared in accordance with applicable accounting standards and accounting policies - these key accounting policies are a subset of the full accounting policies.

2.1 Basis of preparation

As a listed Company we are required to prepare our consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) adopted by the European Union and therefore the Group financial statements comply with Article 4 of the EU IAS Regulation. The financial information included in this preliminary announcement does not include all the disclosures required for IFRS or the Companies Act 2006.

Both the consolidated financial statements and the financial information included in this preliminary announcement have been prepared under the historical cost convention as modified by the revaluation of derivative financial instruments to fair value.

The Group's business activities, together with the factors likely to affect its future development, performance and position are set out above. The financial position of the Group, its cash flows, liquidity position and borrowing facilities are set out in the preliminary announcement along with the Group's objectives, policies and processes for managing its capital.  The details of the Group's financial risk management objectives and its exposures to credit risk, market risk and liquidity risk are set out in detail within the audited financial statements. The directors believe that the Group is well placed and has sufficient financial resources to manage its business risks successfully despite the current uncertain economic outlook.

After making enquiries, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the preliminary announcement.

2.2 Revenue recognition

Credit charges are recognised in the income statement for all loans and receivables measured at amortised cost using the effective interest rate method (EIR). The EIR is the rate that exactly discounts estimated future cash flows of the loan back to the present value of the advance. Acceptance fees charged to customers and any direct transaction costs are included in the calculation of the EIR. Under IAS 39 credit charges on loan products continue to accrue at the EIR on all impaired capital balances  throughout the life of the agreement irrespective of the terms of the loan and whether the customer is actually being charged arrears interest. This is referred to as the gross up adjustment to revenue and is offset by a corresponding gross up adjustment to the loan loss provisioning charge to reflect the fact that this additional revenue is not collectable.

Commission received from third party insurers for brokering the sale of insurance products, for which the Group does not bear any underlying insurance risk is recognised and credited to the income statement when the brokerage service has been provided.

Sales of goods are recognised in the income statement when the product has been supplied.

2.3 Amounts receivable from customers

All customer receivables are initially recognised at the amount loaned to the customer plus direct transaction costs. After initial recognition the amounts receivable from customers are subsequently measured at amortised cost.

The directors assess on an ongoing basis whether there is objective evidence that a loan asset or group of loan assets is impaired and requires a deduction for impairment. A loan asset or a group of loan assets is impaired only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the loan. Objective evidence may include evidence that a borrower or group of borrowers is experiencing financial difficulty, default or delinquency in repayments. Impairment is then calculated by estimating the future cash flows for such impaired loans, discounting the flows to a present value using the original EIR and comparing this figure with the balance sheet carrying value. All such impairments are charged to the income statement. For all accounts which are not impaired, a further incurred but not reported provision (IBNR) is calculated and charged to the income statement based on management's estimates of the propensity of these accounts to default from conditions which existed at the balance sheet date.

Key assumptions in ascertaining whether a loan asset or group of loan assets is impaired include information regarding the probability of any account going into default and information regarding the likely eventual loss including recoveries. These assumptions and assumptions for estimating future cash flows are based upon observed historical data and updated as management considers appropriate to reflect current and future conditions. All assumptions are reviewed regularly to take account of differences between previously estimated cash flows on impaired debt and the eventual losses.

3.       SEGMENTAL ANALYSIS

Analyses by class of business of revenue and profit before taxation are stated below:

		¬¾¾¾Revenue ¾¾¾®				¬ Profit before taxation®
Class of business		Year ended 31.1.13 £000		Year ended 31.1.12 £000		Year ended 31.1.13 £000		Year ended 31.1.12 £000
Consumer credit, rentals and other retail trading		34,189		34,137		6,150		6,310
Car finance		20,801		17,782		8,080		5,906
		54,990		51,919		14,230		12,216

Analyses by class of business of assets and liabilities are stated below:

		¬¾¾¾  Assets  ¾¾¾®					¬¾¾¾  Liabilities ¾¾®
Class of business		Year ended 31.1.13 £000		Year ended 31.1.12 £000			Year ended 31.1.13 £000		Year ended 31.1.12 £000
Consumer credit, rentals and other retail trading		35,677		37,087			9,415		5,922
Car finance		53,037		42,662			(37,063)		(30,809)
		88,714		79,749			(27,648)		(24,887)

Depreciation of assets for consumer credit was £434,000 (2012: £381,000) and for motor finance was £81,000 (2012: £72,000). Fixed asset additions for consumer credit were £691,000 (2012: £545,000) and for motor finance were £104,000 (2012: £180,000).

The net finance credit for consumer credit was £264,000 (2012: £96,000) and for motor finance was a cost of £845,000 (2012: £692,000). The tax charge for consumer credit was £1,423,000 (2012: £1,720,000) and for motor finance was £1,927,000 (2012: £1,561,000).

The significant products in consumer credit, rentals and other retail trading are unsecured Home Credit loans. The significant products in motor finance are car loans secured under hire purchase agreements.

The assets and liabilities of the parent Company are classified as consumer credit, rentals and other retail trading.

No geographical analysis is presented because all operations are situated in the United Kingdom.

4.       COST OF SALES

		2013	2012
		£000	£000
Loan loss provisioning charge - consumer credit, rentals and other retail trading		7,704	7,043
Loan loss provisioning charge - car finance		5,291	5,750
Total loan loss provisioning charge		12,995	12,793
Other cost of sales		5,416	5,077
Total cost of sales		18,411	17,870

5.       FINANCE COSTS (NET)

				2013 £000	2012 £000
31.5% cumulative preference dividend				142	142
Bank loan and overdraft				438	453
Other interest payable				2	2
Interest payable and similar charges				582	597
Interest receivable				(1)	(1)
				581	596

6.      EARNINGS PER ORDINARY SHARE

The calculation of earnings per Ordinary share is based on profit after tax of £10,880,000 (2012: £8,935,000).

The number of shares used in the basic eps calculation is the average number of shares in issue during the year of 11,750,289 (2012: 11,739,721).  There are a total of 232,698 dilutive share options in issue (2012: 156,197). The number of shares used in the diluted eps calculation is 11,896,338 (2012: 11,892,430).

7.         AMOUNTS RECEIVABLE FROM CUSTOMERS

			2013 £000	2012 £000
Consumer credit, rentals and other retail trading			51,844	52,849
Car finance hire purchase			71,778	60,338
			123,622	113,187
Less: Loan loss provision consumer credit			(18,023)	(17,604)
Less: Loan loss provision car finance			(19,279)	(18,083)
Amounts receivable from customers			86,320	77,500
Analysis of Security
Loans secured on vehicles under hire purchase agreements			51,807	41,587
Loans secured on residential property under 2nd mortgages			326	462
Other Loans			34,187	35,451
Amounts receivable from customers			86,320	77,500
Analysis of Overdue
Not impaired
Neither past due nor impaired			63,808	54,272
Past due up to 3 months but not impaired			8,971	9,137
Past due over 3 months but not impaired			6,900	7,029
Impaired
Past due up to 3 months			3,529	3,568
Past due up to 6 months			1,159	1,297
Past due over 6 months or default			1,953	2,197
Amounts receivable from customers			86,320	77,500

The credit risk inherent in amounts receivable from customers is reviewed as per note 2.3 and under this review the credit quality of assets which are neither past due nor impaired was considered to be good. The above analysis of when loans are due is based upon original contract terms which are not rescheduled - the carrying amount of amounts receivable from customers whose terms have been renegotiated that would otherwise be past due or impaired is therefore £nil (2012: £nil). 

 8. RECONCILIATION OF OPERATING PROFIT TO NET CASH FROM OPERATING ACTIVITIES

	2013 £000	2012 £000
Operating Profit	14,811	12,812
Finance costs paid	(582)	(597)
Finance income received	1	1
Tax paid	(3,328)	(2,883)
Depreciation on plant,property and equipment	515	453
Loss on disposal of plant, property and equipment	38	28
Increase in amounts receivable from customers	(8,820)	(2,782)
Decrease in inventories	14	5
Decrease/(increase) in trade and other receivables	61	(2)
Increase/(decrease) in trade and other payables	423	(71)
Increase in accruals and deferred income	485	776
Increase in cost of future share based payments	256	176
Decrease in retirement benefit obligations	(26)	(20)
Net cash from operating activities	3,848	7,896

 

END

 

 

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